HomeMy WebLinkAboutApple Valley Park Sitework
Augusta Richmond GA
DOCUMENT NAME: AvP Ie.- V 0'-\ \ e..jW-V ,c. S I +c-.wDy-\ (.
DOCUMENT TYPE: CD n-t-y-o_C~T'S
YEAR: ,~o03
BOX NUMBER: ~([)
FILE NUMBER: \ '10'2- ~
NUMBER OF PAGES:
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AUGUSTA-RICHMOND COUNTY
HOUSING & NEIGHBORHOOD
DEVELOPMENT DEPARTMENT
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PROJECT #:
Ball's Enterprises, Inc.
721 Eve Street
Augusta, GA 30904
Apple Valley Park Sitework
Marvin Griffin Road
Augusta, GA 30906
CDBG-03030
TO:
PROJECT:
1. You are hereby notified to commence work on the property listed above, in
accordance with the Construction Contract dated September 24, 2003.
2., Y(Ju may begin wor:k onthis project On!l.L...h..efnrp 1 Of?O fO':\
'Your comtic:fnyi' Will complete all work not- later
than Thirty (30) consecutive calendar days from the Sta~~ 'The Sche~uled
Completion' Date for this project is therefore _ /;j- '/.Y/'~J ' .
;
,3. Liquidated damages, as outlined in the contract, will begin on the day after the
Scheduled Completion Date, and will continue daily until the project is actually
completed. Authorized delays that may add additional time to the Scheduled
Completion Date will be determined by HND and the Owner.
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CONTRACTOR ACCEPTANCE OF NOTICE
Receipt of the above Notice to Proceed is hereby acknowledged by Ball's Enterprises,
IncOo
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Title: President
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BALL'S ENTERPRISES, I~
721 Eve Street, Augusta, GA 30904
706 736 0021
Fax 7360096
LETTER OF TRANSMITTAL
Date c.-:A:-of( ~ 1/.2.003
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Job#,
Owner
We are sending you herewith:
-L Attached .. Under separate"cover
, Shop drawings '
Prints
As requested
Approved as noted
Returned for corrections
Plans
Resubmit
For review & comment
For approval
Change order
Specifications
Action requested
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Comments
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, BALl'S ENTERPRISES, lNCORPORA TED
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HALL'S ENTEHPIUSES
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u~s. Department of Labor
Wage and Hour Division,
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Farm Approved
Bwiset BIUUlI No. 44-RI093
STATEMENT OF COlvIPLIANCE
" Dat(/X~~.3'
1. ~' g~ . ..p~ /J?.:r,e, " dohcrcbysw.e: " _"
, (Name of signatOry pany) , ' , ~e)
(1) Thall payor supervise tbC payment of 1he persons employed by ~ IH-JwJ ~7.1)((<QQ lhc C t3P?- cJ 3.t:J.!2? :
" (COIIIr'aCtqr or Subconttlcw~) ~CJc13
that during the payroll period commcWng 011 th:AO day ofOCr~CDdiDg the "uclay of CJ'G, . f9_. all penons cmpioycd on
,sa.i8rojett ~ve been paid !he full wectJy WIles wu:d that DO rcb.ur:s bave been or will be made either directly or iDdirect1y to or on bcba1f on said
. iJ).1-J- f ~.1 / /(/C from the full weekly wages wncdby :any person IJ!d mat DO deductions have been made either '
(CD~~rorS~~~
din:ctly or i.udircct1y from tbc full wages eamcd by any pcnOD, other than permissible deductions as defined in RCgulations. Part 3 (29 CFR. Subtitle
A), Wued by me Sccrc:wy ofL1bor WId.cr the Copel.am1 Aa, as Amended (48 Sial. 948. 63 Sial. lOB, n Sw. 967; 76 Stat. 357; 40 U.S.C. 276c),
and descibed below:
(2) That my payrolls Olhcrwise WIder Ibis cmunct RqUircd lObe subn1i~ for the above period are COrRa wi complete: that the wage
r.ltc5 for laborm or mcc:haa.ics comaim:d lhen:in an: uotlcss than the applicable wale rares comaiiu:d in uy wage detScnnina1ian incorpor.ltcd into
, the comraa; Lba1 the ciassifu:.aUons set fo~ ~ria for cad1laborcr or mechanic: camarDI iwhl tile work he performed..
(3) That aDY appTCll1i=s employed in the above period arc clWy registered in a bona fide apprenticeship prosnm n:gist~~ with a State
3 "orcmiccship a!cncy recognized by wBureau of Appremiccship &lid TniDiJ:Jg, United Swe.s Depanmcm of Labor, or if IlD such recognized Ig~nc;y
, :s in a Swc, arc rcgmcred with the Bu:n:au of Apprallic:ship and Training, United Swa Depamncm of Ubor.
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(4) That:
(a) WHERE FRINGE BENEFITS ARE PAID TO APPR.OVED PLANS, FUNDS, OR PR.OGRAMS
DIn addmon to tbe basic bourly wlge rates paid to each Ia.borer or mH"h,,"il! lined in the above rcfe~ payroll '
paymcllIS of friDge bcDcfics u lim:d In tile CDmract have: becz1 or will be made to apprcprilUCd programs far the
bc.nefu of sw::b employees, ~ept as noted In ScalOD 4(c) below.
(b) WHERE FRINGE BENEfITS ARE PAID IN CASH
O Each Uhorer or mc:chmic lisred in Uu: above referenced payroll has been paid as indica1ed on the payroll. an
iUDtlWlI Dot less tban the sum of lhe applicable basic bourly wage r.ue plus me amount of the n:quin:d fringe benefit5
as listed in the CDtWilCt, except as noted in scaioD 4(t:) bc:low ~
(c) EXCEPTIONS
EXCEPTIONS
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I Th. wilful f)bilic:.auon of ~y of llu: &bo.. I~ may IUbjOCll!lt c.ol\1nClDr~r JubconuaCIDr ItJ l:i.il Dr crimilW pt1l&a:llliol\. S.., staion 1001 of litle \8 =1 Joc1ion 2J I Dr lill.
j I of rhe Unilrd SU~ eode, '
Form WH-;l48 (1(68) Pun:/We lIIis (onndircclly tnJlllllle SUjlI. o( DOQlIfJtJIU,
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THE AMERICAN INSTITUTE OF ARClllTECTS
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AlA Document A312
Performance Bond
Bond '181304
Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable.
CONTRACTOR (Name and Address):
Balls Enterprises
SURETY (Name and Principal Place of Business):
International Fidelity & Surety, Ltd.
, 721 Bve Street 100 Pearl ,Street, 14th Floor
'Augusta,' GA, 309041 Bartford, ,9'r 06103
OWNER (Name and Address): ". ~:~:~e:~US~~ and Reighborhood'Development.
, One 10th Street, Suite ~,\~AUgUsta, Georgia 30901
CONSTRUCTION CONTRACT ~t ' \) 'U ,
Date: 09/24/03' , ,~"
Amount: ****$52,354.00 Two Thorn.nd Three Hundred Fifty Four And oonoo'.}
Description (Nanie and Location):
Cleaning, Grubbing- Solicitation Number HND-03-IFB-OIO
BOND
Date (Not earlier than Construction Contract Date): 09/25/03
Amount: ****$52,354. .00 (Fifty Two Thoruend Three Hundred Fifty Fou,And 00/100'.)
Modifications to this Bond: 0 None
o See Page 3
CONTRACTOR AS PRINCIPAL
'Company:
Balls Enterprises
(Corporate Seall
SURETY
Company: (Corporate Seal)
International Fidelity & Surety, Ltd.
Signature:
Name and Title:
Signature:
Name and Title:
(Any additional signatures appear on page 3)
Melanie Grunwa~d, Attorney-In-Fact
(FOR INFORMA TION ONL Y-Name, Address and Telephone)
AGENT or BROKER: OWNER'S REPRESENTATIVE (Architect, Engineer or other party/:
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AlA DOCUMENT A312 . PERFORMANCE BOND AND PAYMENT BOND. DECEMBER 1984 ED. . AIA @
THE AMERICAN INSTITUTE OF ARCHITECTS. 1735 NEW YORK AVE., N.W., WASHINGTON, D.C. 20006
TIIIRD PRINTING. MARCH 1987
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1 The Contractor and the Surety, jointly and 8cvemlly, bind
themselves, their heirs, executors, admini8trators, 8ucc~SOrs and
assigns to the Owner for the performance of the Construction
Contract, which is incorporated herein by reference.
2 If the Contractor perfonns the Construction Contract, the
Surety and the Contractor shall have no obligation, under this
Bond, except to participate in conferences 8S provided in Sub-
paragT1lph 3. L
3 If there is no Owner ~fault, the Surety's obligation under this
Bond shall arise after:
3.1 The Owner has notified the Contractor arid the Surety at
its address descnoed in Pamgraph 10 below that the Owner ill
considering declaring a Contractor Default and has requested and
attempted to 8mulge a conference with the Contractor and the
Surety to be held not later than .fifteen days after receipt of such
notice:: to discuss methods ofperfonning the Construction contract
If the Owner, the Contractor and theSuietyagree, the Contractor
shall be allowed a reaSonable time to pcrfoIIl1 the COllBtruction
Contract, but such an agrecment8hall not waive the Owner's right,
if any, subsequently to declare a Contractor Default; and
3.2 The Owner has declared a Contractor Default and formally
terminated the Contractor's right to oompl= the contract.' Such
Contractor Default shall not be declarcd earlier than twenty days
after the Contractor and the surety have received notice ils
provided in Subpamgtllph 3.1; and
5 If the Surety do~ not proceed as provided in Paragraph 4 with
, reasonable promptness, the Surety shall be deemed to be in default '
on thi3 Bond fifteen days after receipt of an additional written
notice from the Owner to the Surety demanding that the Surety
perfonn its obligations under this Bond, and the Owner shall be
entitled to enforce any remedy available to the Owner, If the
Surety proceeds as provided in Subparag11lph 4.4, and the Owner
refuses the payment tendered or the Surety hlill denied Liability. in
whole or in part, without further notice the Owner shall be entitled
to enforce any remedy available to the Owner.
6 After the Owner has terminated the Contractor's right to
complete the Construction Contract, and if the Surety elects to 'act
under Subparagraph 4.1, 4.2, or 4.3 above, then the
responsibilities of the Surety to.the Owner shall nol be greater than
those of the ContIactor under the Con~truction Contract, and the
responsibilities of the Owner to the Surety shall not be' greater than
those of the Owner under the Construction Contract.. To the limit
of the amount of this Bond, but subject to conunitment by the
Owner of the Balance of the Contract Price to mitigation of costs
and damages on the Construction Contract, the surety is obligated
without duplication for:
6. t The responsibilities of the Contmctor for correction of
defective wade and completion of the Construction Contract;
6.2 Additional legal, design professional and delay costs
resulting from Contractor's Default, and resulting from the actions
or ,failure to act of the Surety under paragraph 4; and
3.3 The Owner baa agreed to pay tho balance of the Contract
Price to the Surety in accordance with the terms of the Con-
struction Contiact or to a contractor selected to pCIfunn the
Construction'Contnctin accordance with the tCmili of the, contract
with the Owner. 7 The surety shall not be liable to the Owner or otherK for
' , ~Ob' ~s oftheConlractor that lU'C u=latcd to the Construction
4 When the Owner has satisfied the conditions of Paragraph 3, and the Balance of the Contract Price shall not be
the Surety shall promptly and at the Surety's expense takc,Otf ^ set off on Ilccount of Ilny such unrelated obligations.
the following actions: ,,~ right of action shall accrue on this bond to any penon or entity ,
~;, ,;', other than the Owner or its heirs, executors, administrators or
4.1 Anange for the Contnctor, with the colaeDr, "t1t the successors.
Owner, to perfonn and complete the Construction Co~tract; or ' ,
8 The Surety hereby waives notice of any change, including
changes of time, to the Construction Contract or to related,
subcontracts, purchase orders and other obligations.
4.2 Undertake to pcrfonn and complete the Construction
Contract itself, through its agents or through independent
contractors; or
4.3 Oblain bids or negotiated proposals from qualified
contractor.s acceptable to the Owner for a contract for pc:rfonnance
!lod completion of the Construction Contract, arrange for a
contract to be prepared for execution by the Owner and the
contractor selected with the Owner's ooncurrence, to be secured
with pcrfonnance and payment bonds cxecuted by a qualified
surety equivalent to the bonds iBsued on the Consl.nlction Contmct,
and pay to the Owner 1he amount of damagca a8 described in
Paragraph 6 in excess of the Balance of the Contract Price
incurred by the Owner I'Cllulling from the Contractor's default; or
4.4 Waive its 'right to perfonn and complete, IlII1ll1ge for
completion, or obtsin a new contractor and withI'ClllloDsble'
prompUless under the circumstances:
., After investigation. dctcnnine the,llmount for which it
may be liable to the Owner and, as soon as pmcticable after the
amount is detennined, tender payment therefor to the Owner; or
.2 Deny liability in whole or in part and notify the Owner
citing reasons thereti)l".
6.3 Liquidated damages, or if no liquidated damages are
specified in the Construction Contract, actual damages caused by
, delayed perf.i)J:m~~ or non-perl'onnan~ of the Contractor.
9 Any proceeding, legal or equitable, WIder this Bond may be
instituted in any court of cornpctcntjurisdiction in the localion in
which the work. or part of the worle. is located and shall be
instituted within two years' after Contractor Default or within two
years after the Contractor CClllIed working or within two years after
the Surety refuscs or fails topcrfonn its obligaliow under this
Bond, whichever occum, firat. If the provisions of this Paragraph
ate void or 'prohibited by law, the minimum period of limitation
, Ilvailable to sureties III a defense in the jurisdiction of the suit shall
be applicable.
10 Notice to the SUIely, the Owner or the Contractor shall be
mailed or delivered to the address shown on the signature page.
1 1 When this bond has been furnished to comply with 11. statutory
or other legal requirement in the location where the construction
WIlS to be perfonncd, any provision in this Bond conflicting with
said statutory or legal requirement lIhall be deemed deleted
'hcrefrom and provisions cantonning to ,such stalUtory or other
' legal requirement shall be deemed incorporated herein. The intent,
is that this Bond shall be construed as a BtatulOry bond and not as
!I. common law bond.
AlA DOCUMENT A312 . PHRFORMANCE BOND AND PAYMENT BOND. OBCBMBBR 1984 EO. . AlA @
THB AMElUCAN INSTITUTB OF ARCHITEcrS. 1735 NEW YORK AVB., N.W., WASHINGTON, D.C. 20006
THIRD PRINTING . MARCH 1987 '
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'2 DEFINITIONS
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l2.1 Balance of the Contract Price: The tolal amount payable by
the Owner to the Contractor under the Construction Contract after
aU proper adjustments have been made, including allowlIllce to the
Contractor of any amounts receive<! or to be received by the
Owner in settlement of insurance or other claims fo\" damages to
which the Contractor is entitled; reduced by all valid and proper
payments made to or on behalf of the Contractor under the
Construction Contract. '
12.2 Construction Contract: The agreement between the, Owner
MODIFICATIONS TO mIS BOND ARE AS FOLLOWS:
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and the Contractor identified on the signsture page, including all
Contract Documents and changes thereto, '
12,3 Contractor Default: Failure of the Contractor, which has
neither been remedied nor waived, to perform or otherwise to
comply with the tenns of the Construction Contract
12.4 Owner Default: Pailure of the Owner, which has neither
been remedied nor waived, to pay the Contractor as required by
the Construction Contract or to perform and complete or comply
with the other terms thereof.
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(Space is provided below for additional signatures of added parties, other than those appearing on the cover page.)
CONTRACTOR AS PRINCIPAL
Company:
(Corporate Seal)
Signalure:
Name and Title:
Address:
SURETY
Company:
(Corporate Seal)
Signature:
Name and Title:
i:"ddress:
AlA DOCUMENT A31Z . PERFORMANCE BOND AND PAYMENT BOND. DECEMBER 1984 ED. . AlA@
THE AMERICAN INSTITUTE OF ARCHITECfS, 1735 NEW YORK AYE.. N.W,. WASHINGTON, D.C. 20006
THIRD PRINTING . MARCH 1987
A312-1984 3
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THE AMERICAN INSTITUTE OF ARCHITECTS
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AlA Document A312,
PaymetntBond
Bond , 181304
Any singular reference to Contractor, Surety, Own~r or other party shall be considered plural where applicable.
CO~TRACTOR (Name and Address): '
Balls Enterprises
SURETY (Name and Principal Place of Business):
Interna~ional Fidelity & Surety, Ltd.
721 Eve Street 100 Pearl Street, 14th Floor
Augusta, GA,30904 Hartford, CT 06103
OWNER(Name and Addressl: Augusta HOusing andu He'ighbo~hood Development "
Department lie
' One 10th Street, Suite 430 "'~ gusta, Georgia 30901
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CONSTRUCTION CONTRACT . (. x.\ ,\'~~';\
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Date: 09/2 G. /03 (_ '\ ":": _ \',;;~
Amount: ** **$52,354. 00 (Rt~ T~itThou..nd. Three Hundred Rfty Four And 00/700',;
Description (Name and Location):
Cleaning, Grubbing- Solicitation Number HND-03-IFB-OIO
BOND
Date (Not earlier than Construction Contract Date): 09/25/03
Amount: **** $52,354.00 (Fifty Two Thounnd Three Hundred Fifty Four And oonoo'lI)
Mqdifications to this Bond: 0 None
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CONTRACTOR AS PRINCIPAL
Company:
Ba11s Enterpr~ses
(Corporate Seall
SURETY
Company: (Corporate Seal)
International Fidelity & Surety, Ltd.
Signature:
Name and Title:
Signature:
Name and Title:
(Any additional signatures appear on page 6)
Melanie Grunwald, Attorney-lu-Fact
(FOR /NFORMA TION ONL Y-Name, Address and Telephone) ,
AGENT or BROKER: OWNER'S REPRESENTATIVE (Architect. l:ngineer or other part'{l:
KIA
AlA DOCUMENT A312. . PERFORMANCE BOND AND PAYMENT BOND . DECEMBER. 1984 'ED. . AlA @
THE AMERICAN INSTITUTE OF ARCHrrEcrs. !735 NEW YORK AVE" N.W., WASHINGTON, D.C. 20006
7HIRD PRINTING . MARCH 1987 '
A312-1984 4
L.OO/\700~
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9600 !H: L BOL XVd 'l(;: 9 T \:00(; I SO /0 T
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DOCUMENTS" appe:" i;..- bl::' ~~ ilia
Power of Attorney along with an
original seal
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Bond No.:
181304
INTERNATIONAL FIDELITY & SURETY, LTD.
INSURANCE COMPANY
Head II uarters:
Pan: Vila
Va.nuatu
S outb Pacifi c
COrT1!3pondent office:
122-126 High Road
London NW6 4HY
United Kingdom
MllIUIgemenUClaims office:
C/O reM Group. LLC
100 Pearl Street, 14"' Floor
Hartford, CT 06103
POWER OFATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That International Fidelity & Surety, Ltd. organized aDd eJcisting under the laws of the Republic of Vanuatu and pursuant to
the following Resolution, which was a.dopted by ihe, Board ofDirectonl of the said Coinpany, to wit: '
RESOLVED, that the following rules shall govern the execatiO!1 for the ComPIlllY of bonds, undet1akings, n;cogniunccs, contncts IUld other writings in the Il3llml tbfreof:
(1)
, ,
That the Chairman. the President, any Vice President & General Counsel, or any Attorney-In-Fact, may e~cute for and on behalf of the Company, any and all bonds,
undertakings, recognizances, contracts and ather writings in the nature thereof: the aame to be attested, when necessary, by the Corporate Secretary or any As.sista.nl.
Corporate Secretary, and the seal of the Co~any affixed thereto, IUld that the Chairman or Prcsidcut may appoint 8Ild authorize any other Officer (elected or
appointed) cfibe Company IIlld Attorneys-In-Fact, to so execute or attest to the execution of such writings on behalf of the Company i1nd to affix: the seal of the
CQmpanythereto: '
(2)
Any such writing executed in accordance with these rules shall be binding upon tlu; Company in any case lIS though signed by the Prcsident aDd attested to by tho
Corporate Secretary. ' ,
(3)
-The signature of the Chairman, the President or Vice President of the Company may be afflXtd by fliCsimile on any Power of Attorney gnuJted pursuant to this
RllsOIutiOll, and the signature of a fucsimile to any cmificate of any such Power, and any such Power, or Certificate bearing such fiu:simile signature aud seal, shall be
, valid and binding on the Company. '
Such other Offieersoithe Company, and Attorneys-In-Fact &hall have authority to certify or verify copies of this Rcsolution, the By-Laws of the Company md any
affidavit orr~ord of the Company necessary to the discharge of the dutiils,
(4)
does herebynonUnatc, co~te IIIld appoint:
Melanie Grunwald, as its true and lawful Attorney-In-Fact, to make, ex:ccute, Ileal and deliver on its behalf, and 'as its act and deed any and all bonds. undertakings,
recognizances. cotrtnu:la and other writings. in tho nature thoreof in pco.alty amounts not oxceeding TWENTY MILLION (520,000,000.00) DOLLARS each, and the
execution of such writings in PUTBUaDCC of these present&, aball be as bindiog upon said Company, Il8 fully and amply, as if they had been duly cx:ecuted and
acknowledged by the regularly elected Officcrs'ofthe Company ,at its principal office.
NOW THEREFORE, the signalUrell of such OffioenllLOd the soaJ of the compan~ma affixed to any such POWcl". of Attorney or any Certificate, relating thereto by
facsimile, and any Nch Power of Attorney or certificate bearing such fucsimile ' fuc:aimilo seal shaI1 be valid and binding upon the Company and any such
power s~ executed ";f'd certified by fllllaimile si~ and ~CS~~~=If'a.1 i d bindi~g upon the Company in ,the future with respect to any bonds,
undcrtaltings, recogmZ&nces, contnu:;t.sorothcr writmgs,to wh\~.ia~ ch'\II ' , '"
IN WITNESS WHEREOF. Melanie GrunWald, has ~er~o \~ d her ~ and affixed the Corporate Seal ofTntemational Fidelity &: Surety, Ltd. this 25th
day of September, 200_3 ' , " -
INTERNATIONAL FIDELITY &; SURETY, LTD.
By:
Melanie Gronwald
Its: Attorney-In-Fact
On tbis 25th day of , September- . 200,] before m~, and in my prllSence., came th~ individual wbo executed the preceding iDStrumcnt, and whom is
personally known to me to be the theroin described and authorized OfficCt' of International Fidelity &: Surl:ty, Ud., that tho SlIal affixed to SlIid instrument is the
Corporate Seal of said Company and that the said Corporate Seal and her signature was duly affixed by order of the Board of Directors of said Company.
IN TESTIMONY WHEREOF; Ihavc hereunto set my hand this25thday of Septembel:" .2003...
Witness
Mal:"k E .~\lolok
l.,lhe undersigned officcr,oflntemational Fidelity &,Surety, Ltd. do hereby certify that I have compared the foregoing copy ofthc Power of Attorney IUJd Affidavit,
:mli that the copy of the Section of the By-Law. oHhe said Company a8 set !ortb in said Power of Attorney, Yri!h the originals on tile in the borne office of said Company, and
that the SlLme are cOfTecttranscriplS thereat: and of the 'wnole oHne said originals. and that the said Power of Attorney Ius not been revok.ed and is now in full force and effect.
fN TESTIMONY WHEREOF, I have hereWlto sel my hand this 2.St.h... day ol~c ''''pt- pmher. 2003..
Brian 8, Keses
Assistant S ecretacy
1..001 1..00 ~
S3S IlldH3.LN3 S, TIVH
9600 ijrL DOL YVd i..~:9T 200~/SO/O[
'tr
, The Contractor and the Surcly, jointly and severally, bind
themseives, thcirheirs, executors, administrators, successon and
llssigns to the Owncr,to pay for labor, lIUit.erials and equipmcnt
furnished for use in the performan= of the Construction Contract,
which is incorporated herein by reference.' ,
2 With respect to thc Owner, this obligation shall be null and
void if the Contractor:
2.1 Promptly makes payment, directly or indirectly" for all
sums due Claimants, and
2.2 Dcfends, indemnifics 'and holds hannlcas the Owner from
claims, dc:mands, liens or suits by any person or entity whose
claim, demand, lien or suit is for the payment for lahar, materials
or equipment furnished for the llBe in the perfonnance of the
Construction Contract, provided the Owner has promptly notified
the Contractor and the Surety (at the ad~ dcacribed in
Paragraph 12) of any claims, demands, liens or suits and tendered
defClUle of such claims,demands, liens or suits to the Contractor
and the Surety, and provided there is no Owner Default.
3 With respect to Claimanlll, this obligation shall be null and void
if the Contractor promptly makcs payment, directly or indirectly,
for all sums due.
4 The Surety shall have no obligation to CJaimanlll under this
bond unli1:
4.1 Claimants who are employed by or have a direct contract
with the Contractor have given notiCQ to the Surety (at the address
described in Paragrapn 12) and sent a copy, or notice thereof, to
the Owner, stating that a claim is being made under this Bond and,
with substantial accuracy , the amount of the claim.
4.2 CJaunants who do not have a direct contract with the
Contractor.
. , Have furnished written notice to the Contractor and sent
a copy, or notice thereof, to the Owner, within 90 days after
havmg last perlormed labor or Jast furnished materials or
equipment included in the claim stating, with substantial acc~,
the !l1l\ount of the claim and the name of thepart)\ft\om c
matcria.1s, were furnished or supplied or for whom- '..,~
done or pcrl'ormed; and
.2 Have either received a rejection in whole or in part from
'the Coolrllctor, or l10t received within 30 days of furnishing the
above notiCe any conununicalion from the Contractor by which the
Contractor baa indicated the claim will be paid directly or
indirectly; and
.3 Not having been paid within the above 30 days, have scot,
a written notice to the Surety (at the Ilddrcas dcscribed in
PaI1lgraph 12) !lnd sent 11, copy, or notice thereof, to the Owner,
stating that a claim is being made under this Bond Ilnd enclosing
a copy of the previous written notice furnished to the Contractor.
5 If a notice required by PaI1lgraph 4 is given by the Owner to
the Contractor or to Ibe Surety, that is sufficient compliance.
6 Whcn the Claimant has satisfied the conditions of Pat:8graph 4,
me Surety shaU promptly Ilnd at the Surety's expense take the
following actions: '
6.1 Send an answer to the Claimlll1l, with a copy to the Owner,
within 45 days after receipt of the claim, stating the amounts that
are undi.9put.ed and the basis for challenging any amOUnts that are
disputed.
6.2 Payor arrange for payment of any undi.9puted amounts,
7 The Surety's tolal obligation shall not exccod the amount of this
Bond, and the amount of thi& Bond shall be credited for any
paymcnts made in good faith by the Surety.
B Amounts owed by thc Owner to the Contractor under the
COl1Btruction Contract shall be used for the perfonnlUlce of the
Construction Contract and to satisfy claiau, if any, under any
Construction Perlonnance Bond. By the Contractor furnishing and
the Owner accepting this Bond; they agrc:e that all. funds earned by
the Conlrlictor in the perfomuutce of the Construction Contract are
dedicated to satisfy obligations of the Contnctor and the Surety
W1dcr this Bond, subject to the Owner's priority to use tile funds
for the completion of the work:.
9 The Surety shall not be liable to the Owner, C1a.im.ants or
others for obligations of the Contractor that are unrelated to the
Construction Contract. The Owner sha.ll not be liable for payment
of llI1Y costa or expenscs of any Claimant under this Bond, snd
shall have under this Bond no obligations to make payments to,
give noticca on behalf of, or otherwise have obligations to
Claimanlll under this Bond.
'0 The Surely hereby waivc& notice of llllY cnange, including
changes of time, to the Construction Contract or to related
subcontracts, purchllllC orders and other obligations.
11 No suit or action shall be commenced by a Claimant under
this Bond other than in II court of competent jurisdiction in the
localionin which the work or part of the,.vrorl: is located or after
., the expiration of-one year 'from-the date(l) on which the C\aiinant
gave the notice required by Subparagnph4.l or Clause 4.2.3, or
(2) on which the last labor or service WIIB perlonncd by anyone or
the last materials or equipment were furnished by anyone under the
Construction Conlmct, whichever of (1) or (2) first lX:ClU'll. If the
Provisio~of this Paragraph are void or prolubited by law, the
~~ period of limitation availab1.c to sureties as II. defense in
~ 1)it '" ,tion of the suit shall be applicable.
, 12 Notice to the Surety, the Owner or the Contractor shall be
mailed or delivered to tlte address shown on the signature page.
Actual receipt of notice by Surety, the Owner or the Contractor,
however accomplianed, shall be 'sufficient compliance as of the
date .received lit the address snown on lhesignature page.
1 3 When this Bond has been furnished to comply with a statutory
or other legal requirement in the location where the constrUction
was to be performed, any provision in this Bond conflicting with
said statutory or legal requirement, shall be deemed deleted
herefrom and provisions conforming to such statutory or other
legal requirement shall ~ dCCII1c:d incorporated hcn:in. The intent
is that this Bond shaU be construed as a sllltutory bond and 110t liS
II common law bond.
'4 Upon requcst by any person or entity appearing to be II
potential beneficiary of Ibis Bond, the Contractor shall promptly
furnish a copy of this Bond or shall permit 11 copy to be made.
1 5 DEFINITIONS
'5.' Claimant: an individLllll or entity having a diIect contract
with the Contractor or with a subcontractor of the Contractor to
furnish labor, materials or equipment f~r use in the perlonnance
of the Contract.
,~IA DOCUMENT A312 . ?ERFORMANCE BOND AND PAYMENT BOND. DECEMBER 1984,ED. . AlA @
THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AYE., N.W" WASHINGTON, D,C. 20006
THlRD PRINTING . MARCH 1987 '
::'OO/SO()~
A312-19B4 5
,SaSDJdmnN3 S, 11V\1
9600 gEL ROL rVd 9~:91 SOOZ/80/Ut
~I
The intent of this Bond &hali be to include without limitation in UIC
fernts "labor, materials or equipment" that part of water, gas,
power, light, heat, oil, gasoline, telephone service or rcnllll
equipment used in the Construction Contract, architectural and
engineering services required foe perfonnance of the work: of the
Contractor and the Contractor'I' subcontrllctors, and all other items
for which a mcchanic'& lien may be asserted in the jurisdiction
wh= the-labor, matcrWs or equipm~t were furnished.
MODIFICATIONS TO THIS BOND ARE AS FOLWWS:
15.2 Construction Contract: Th~ agreement between th 0 '
and the Cont.m.ctor identified' on the signature page, incl~din ::c~ '
Contract Document.'! B.J1d changes there~, <>
15.3 Owner Default: Pailure of the Owner, which has neither
been remedied nor waived, to pay the Contractor ILl required b
the Construction Contract or to perform IlJ1d complete or camp?
with the other terins thereof. " Y
'r
Paragraph 4.2 is amended to add the following:
A condition precedent to Surety' 6 obligation to pay claimant under,
this bond is that claimant shallcoaply with all notiCe requirements of
the state .law which requires this Payment Bond for Public Work and
Governmental Projects.
~~!
'. ~~~"
1:. \.\ t
\ \-l' '
CONTRACI'OR AS PRINCIPAL
Coll1plllly;
(Space u provided below for addilionallignAturcr of added parties. other than tholl~ ~g 00 the cover page.)
(Corporate Seal)
Signature:
Name lUId Title:
Addrc:ls:
SURETY
Company: (Catpol1lte Seal)
International Fidelity & Surety, Ltd.
Signa.ture:
Nnme lUld Ti11c;
Address:
Melanie G~unwald
Attorney-in-Fact
AlA DOCUMENT A312. . PERFORMANCE BOND AND PAYMBNTOONl> . DEqiMBBRl984 ED. . AlA @
TIm AMERICAN INSTITUI13 OF ARCHITECTs. 1735 NEW YORK AVB-, N.W., WASHINGTON. D.C. ::'0006
TIlIRD PRINTING . MARCH 19111 ' ,
LOO/!JOO ~
A312-1984 6
S3'SIHdH3'.LN3 S,ilVH
9600 geL YOL YVd L~:UT ~UO~/90/OI
~
~ "
,j
7'Jt-.J ~- fO
ACT DOCUMENTS -- CONSTRUCTI6N
FORM OF CONTRACT
HND:Form 401
__(Rev. 06/03)
Project #:
CDBG-03030
, ,
THIS AGREEMENT made this twenty-fourth day of September in the year 2003, by and between Ball's
Enterprises. Incorporated, a Corporation, Partnership or Sole Proprietorship existing under the laws of
the State of Georgia, hereinafter called the "Contractor," and AUQusta-Richmond County. herein called
the "Owner."
WITNESSETH, that the Contractor and the Owner for the consideration stated herein, mutually agree
as follows:
ARTICLE I
Statement of Work. The Contractor shall furnish all labor, material, equipment, and services and
,perform and complete all work required for the construction of Project- No. CDBG-03030, in strict'
accordance with "Invitation for Bids on Apple Valley Park Sitework, IFB# HND-03-IFB-010, dated
August 21, 2003, and the drawings referred to herein, as prepared by W.R. Toole Engineers, Inc.,
which said Specifications, Addendum and Drawings are incorporated herein by reference and made a
part hereof.
ARTICLE II
Contract Price. The Augusta-Richmond County Housing & Neighborhood Development Department,
on behalf of the Owner, shall pay the Contractor for the performance of the Contract, in current funds,
subject to additions and deductions as provided in the specifications for completed work meeting the
requirements of the Contract Documents, the sum of:
Fiftv- Two Thousand. Three Hundred! and Fifty-Four Dollars ($52.354.00).
ARTICLE III
Contractor agrees that time is of the essence in the completion of the work in the time required by this
contract and hereby waives any notice of putting in default for failure to complete on time.
ARTICLE IV
Contract Documents. The contract shall consist of the following component parts:
(a) This Instrument
(b) General Conditions
(c) Special/supplemental Conditions
(d) Technical Specifications
(e) Drawings
Page 1 of 2
d#~~/t/~-~o//&~oe'
..
~
HND Form 401
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
FORM OF CONTRACT
Project #:
CDBG-03030
This instrument, together with the other documents enumerated in this ARTICLE IV, which said other
documents are as fully a part of the, Contract as if hereto attached or herein repeated, form the
Contract. In the event that any provision of any other component part of this Contract conflicts with
any provision of any other component part, the provision _of the component part first enumerated in
the ARTICLE IV shall govern, except as otherwise specially stated. ,The various provisions in the
Addendum shall be construed in the order of the preference of the component part of the Contract
which each modifies. '
IN WITNESS WHEREOF, the parties hereto have caused this Instrument to be executed in four (4)
original counterparts as of the day and year first above written,
AUGUSTA-RICHMOND COUN
{Owner)
)
cr
...'
BOB YOUNG
(Print Name)
MAYOR
(Title)
BALL'S ENTERPRISES. INCORPORATED '
(Contractor)
~6,M
(Signature)
Shirlene Ball
(Print Name)
President
(Title)
Sworn to and subscribed before me this Twent,,-Fourth day of September in the year 2003.
Notary Public
(SEAL)
Page 2 of 2
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS .- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
I ' " '
- '< '-\ - , ! ,,~--, - . .!' - i ,'" "--- ,--: ~- -- . .. ,. ,- --'.' - -,-'_-~ONDUCT Or=~WORK--
1. ,Definitions.
A. "Architect" means the person or other entity engaged by the Owner to perform architectural, engineering, design.
and other services related to the work as provided for in the contract. When HND uses an engineer to act in this
capacity. the terms "architect" and "engineer" shall be synonymous. The' Architect shall selVe as a technical
representative of HND and the Owner. The Architect's authority is as set forth elsewhere in this contract.
B. "Contract" means the contract entered into between the Owner and the Contractor. It includes the forms of Bid,
the Bid Bond. the Performance and Payment Bond or Bonds or other assurance of completion, the Certifications,
Representations. and Other Statements of Bidders. these General Conditions of the Construction Contract, the
applicable wage rate determinations from either the U.S. Department of Labor or HUD, and any Supplemental
and Special conditions included in the contract, the Notice to Proceed, the drawings and specifications, and the
work write up. It includes all formal changes to any of those documents by addendum, change order. or other
modification The Contract, including all referenced documents, constitutes the entire agreement between the
parties. No agent, representative, employee or officer of either HND. the Owner. or the Contractor has authority to
make any statement, agreement or representation. oral or written, in connection with the Contract, which in any
way can be deemed to modify, add to or detract from, or otherwise change or alter its terms and conditions. No
negotiations between the parties, nor any custom or usage, shall be permitted to modify or contradict any of the
terms and conditions of the Contract. No modifications, alterations, changes, or waiver to the Contract or any of
its terms shall be valid or binding unless accomplished by a written amendment signed by all parties. All such
amendments will be made using the appropriate HND form.
C. "Contractor" means the person or other entity entering into the contract with the Owner to perform all of the work
required under the contract.
O. "Drawings" means the drawings enumerated in the schedule of drawings contained in the Specifications and as
described in the contract clause entitled"Specificatoons and Drawings for Construction" herein.
- -E:"HND" means the Augusta-Richmond County Housing and Neighborhood Development Department. HND provides
financial assistance to an eligible Owner, which includes assistance in financing the work to be performed under
'this contract. As defined elsewhere in these General Conditions or the contract documents. the determination of
HND is required to authorize changes in the work or for release of funds for payment to the Contractor.
Notwithstanding HND's role, nothing in this contract shall be construed to create any contractual relationship
between the Contractor and HND.
, ' .
F. "HND Rehabilitation Inspector; means the person or persons delegated the authority by HND to execute,
administer. and/or tenninate thiscbntract. The tenn includes any successor HND Rehabilitation Inspector. HND
shall be deemed an authorized agent of the Owner in all dealings with the Contractor.
G. "Owner" is the person or organization identified as such in the Construction Contract. The term owner means the
Owner or his authorized representative.
H. "Project" means the entire project. whether construction or rehabilitation. the work for which is provided for in
whole or in part under this contract.
I. "Specifications" means the written description of the technical requirements for construction and includes the
criteria and tests for determining whether the requirements are met.
J. "Testing Laboratory" An independent entity engaged to perform specific inspections or tests of the work,either
at the project site or elsewhere; and to report and, if required. interpret results of those inspections or tests.
Page 1 of 33
~
~
HND Form 402
(Rev,06r03)
CONTRACT DOCUMENTS .... CONSTRUCTION
, GENERAL CONDITIONS
Project #:
CDBG-03030
2; Contractor's Responsibility for Work~
A. The Contractor shall furnish all necessary labor, materials, tools, equipment, and transportation necessary
for perfonnance of the work. The Contractor shall also furnish all necessary water, heat, light, and power not
made available to the Contractor by the Owner pursuant to the clause entitled "Availability & Use of Utility
Services. "
B. The Contractor shall perfonn on the site, and with its own organization, work equivalent to at least 12 percent
of the total amount of work to be perfonned under the order. This percentage may be reduced by a
supplemental agreementto this order if, during perfonnance of the work, the Contractor requests a reduction
and HND detennines that the reduction would be to the advantage of HND and the Owner.
C. At all times during perfonnance of this contract and until the work is completed and accepted, the Contractor
shall directly superintend the work or assign and have on the work site a competent superintendent who is
satisfactory to HND and has authority to act for the Contractor.
D. The Contractor shall be responsible for all damages to persons or property that occur as a result of his fault
or negligence, ,and shall take proper safety and health precautions to protect the work, the workers, the
public, and the property of others. The Contractor shall hold and save the Owner and HND, its officers, and
agents, free and hannless from liability of any nature occasioned by the Contractor's perfonnance. The
Contractor, shall also be responsible for all materials delivered and work perfonned until completion and
acceptance of the entire work, except for any completed unit of work which may have been accepted under
fueoontm~ '
E. The Contractor shall layout .the work from base lines and benchmarks indi'cated on the drawings and is
responsible for all lines, levels, and measurements of all work executed under the contract. The Contractor
shall verify the figures before laying out the work and will be held responsible for any error resulting from its
failure to do so.
F. The Contmctor shall confine all operations (including storage of materials) on the Owner's premises to areas
authorized or approved by HND.
G. The Contractor shall at all times keep the work area, including storage areas, free from accumulations of
waste materials: After completing the work and before final inspection, the Contractor shall:
(1.) remove from the premises all scaffolding, equipment, tools, and materials (including rejected
materials) that are not the property of the Owner and all rubbish caused by its work;
(2.) leave the work area in a clean, neat, and orderly condition satisfactory to HND;
(3.) perfonn all specified tests; and,
(4.) deliver the inStallation in complete and operating condition.
H. The Contractor's responsibility will tenninate when all work has been completed, the final inspection made,
and the work accepted by the HND and the Owner. The Contractor will then be released from further
obligation except as required by the warranties specified elsewhere in the contmct.
3. Architect's Duties, Responsibilities, and Authority.
A. The Architect for this contract, if any, shall be designated in writing by HND and the Owner.
B. The Architect shall serve as HND's technical representative with respect to architectural, engineering, and
, design matters related to the work perfonned under the contract. The Architect, when requested by HND,
Page 2 of 33
HND Form 402
(Rev, 06/03)
CONTRACT DOCUMENTS ..~ CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
may provide direction on contract, performance. Such direction shall be within the scope of the contract and
may not be of a nature which:
(1.) Institutes additional work outside the scope of the contract;
(2.) Constitutes a change as defined in the "Changes. clause of this contract;
(3.) Causes an increase or decrease in the cost of the contract;
(4.) Alters the Construction Progress Schedule; or
(5.) Changes any of the other express terms or conditions of the contract.
C. The Architect's duties and responsibilities may include but shall not be limited to:
(1.) Making periodic visits to the work site, and on the basis of on-site inspections, issuing written reports
to HND, which shall include all observed deficiencies. The Architect shall file a copy of the report with
the Contractor's designated representative at the site;
(2.) Making modifications in drawings and technical specifications and assisting HND in the preparation of
change orders and other contract modifications for issuance by HND;
(3.) Reviewing and making recommendations with respect to:
(4.) the Contractor's construction progress schedules;
. (5.) the Contractor's shop and detailed drawings;
(6.) ,the machinery, mechanical and other equipment and materials or other articles proposed for use by
the Contractor.
(7.) Assisting in inspections, signing Certificates of Completion, and making recommendations regarding
acceptance of work completed under the contract.
4. Other Contracts:
HND or the Owner may undertake or award other contracts for additional work at or near the site of the work under
this contract. The Contractor shall fully cooperate with the other contractors and shall carefully adapt scheduling
and performing the work under this contract to accommodate the additional work, heeding any direction that may
be provided by HND. The Contractor shall not commit or permit any act that will interfere with the performance of
work by any other contractor.
Page 3 of 33
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS'.... CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
-.. -1 - 1. !i. ' . uc__- _-' ~ ':. --- ,- ,CONSTRUCTION REQUIREMENTS
f j t: I --_ -:- " t- ~
1. Pre-construction Conference and Notice to Proceed.
A. After the Notice of Award has' been issued, but prior to the contract execution, the Contractor shall attend a
preaconstruction conference with representatives of the Owner, HND, its Architect, and other interested
parties convened by the Owner. The conference will serve to.acquaint the participants with the general plan
of the construction operation and all other requirements of the contract. The Owner will provide all parties
with the date, time, and place of the conference,
B. The Contractor shall begin work upon receipt of a written Notice to Proceed from HND. The Contractor shall
not begin work prior to receiving such notice.
2. Construction Progress Schedule.
A. The Contractor shall, within three (3) business days after the pre-construction conference or another
period of time detennined by HND, prepare and submit to HND three copies of a practicable schedule
showing the order in which the Contractor proposes to perfonn the work, and the dates on which the
Contractor contemplates starting and completing the several salient features of the work (including acquiring
labor, materials, and equipment). The schedule shall be in the fonn of a progress chart of suitable scale to
indicate appropriately the percentage of work scheduled for completion by any given date during the period.
If the Contractor fails to submit a schedule within the time prescribed, HND may withhold approval of
progress payments or take other remedies under the contract until the Contractor submits the required
schedule.
B. The Contractor shall enter the actual progress _on the chart as required by HND, and immediately deliver
three copies of the annotated schedule to HND. If HND detennines, upon the basis of inspection conducted
pursuant to the clause entitled "Inspection and Acceptance of Construction", herein that the Contractor is not
meeting the approved schedule, the Contractor shall take steps necessary to improve its progress, including
those that may be required by HND, without additional cost to HND or the OWner. In this circumstance, HND
may require the Contractor to increase the number of shifts, overtime operations, days of work, and/or the
amount of construction plant, and to submit for approval any supplementary, schedule or schedules in ,chart
form as HND deems necessary to demonstrate how the approved rate of progress will be regained.
C. Failure of the Contractor to comply with the requirements of HND under this clause shall be grounds for a
detennination by HND that the Contractorisl1ot prosecuting the work with sufficient diligence to ensure
completion within the time specified in the Contract. Upon making this determination, HND may terminate the
Contractor's right to proceed with the work, or any separable part of it, in accordance with the "Default"
clause of this contract. "
3. Site Investigation and Conditions Affecting the WOlrk.
A. The Contractor acknowledges that he has taken steps reasonably, necessary to ascertain the nature and
location of the work, and that he has investigated and satisfied himself as to the general and local conditions
which can affect the work or its cost, including but not limited to:
(1.) , conditions bearing upon transportation, disposal, handling, and storage of materials;
(2.) the availability of labor, water, electric power, and roads;
(3.) uncertainties of weather, river stages, tides, or similar physical conditions at the site;
(4.) the confonnation and conditions of the ground; and
Page 4 of 33
HND Form 402
(Rev, 06/03)
CONTRACT DOCUMENTS ... CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
(5.) the character of equipment and facilities needed preliminary to and during work perfonnance.
B. The Contractor acknowledges that he is satisfied as to the character, quality, and quantity of surface and
sub-surface materials or obstacles to be encountered insofar as this infonnation is reasonably ascertainable
from an inspection of the site, including all exploratory work done by HND, as well as from any drawings and
specifications made a part of this contract. Any failure of the Contractor to take the actions described and
acknowledged iri this paragraph will not relieve the Contractor from- responsibility for estimating properly the
difficulty and cost of successfully perfonning the work, or from proceeding to successfully perfonn the work
wittlOut additional expense to HND or the Owner.
C. HND assumes no responsibility for any conclusions or interpretations made by the Contractor based on the
infonnation made available by HND. Nor does HND assume responsibility for any understanding reached or
representation made concerning conditions that can affect the work by any of its officers or agents before the
execution of this contract, unless that understanding or representation is expressly stated in this contract.
4. Differing Site Conditions.
A. The Contractor shall, within two (2) business days of discovery, and before the, conditions are disturbed, give
a written notice to HND and the Architect of:
(1.) subsurface or latent physical conditions at the site which differ from those indicated in this contract; or
(2.) unknown physical conditions at the site, of an unusual nature, which differ materially from those
ordinarily encountered and generally recognized as inhering in work of the character provided for in
the contract.
B. HND and the Architect shall investigate the site conditions promptly after receiving the notice. Work shall not
proceed at the affected site, except at the Contractor's risk, until HND has provided written instructions to the
Contractor. If the conditions materially differ and cause an increase or decrease in the Contractor's cost or
the time required for perfonning any part of the work under this contract, whether or not changed as a result
, of the conditions, HND will make an equitable adjustment in the contract price, the delivery schedule, or both
under this clause and the contract modified in writing accordingly.
c. No request by the Contractorfor an equitable adjustment,to the contract under this clause shall be allowed,
unless the Contractor has given the written notice required; provided, that the time prescribed above' for
giving written notice may be extended by HND.
D. No request by the Contractor.for an equitable adjustment to the contract for differing site conditions shall be
allowed if made after final payment underthis contract.
5. Specifications and Drawings for Construction.
A. The Contractor shall keep on the work site a copy of the drawings and specifipations and at all times give
access to HND and the Architect. Anything mentioned in the specifications and not shown on the drawings,
or shown on the drawings and not mentioned in the specifications, shall be of like effect as if shown or
mentioned in both. In case of difference between drawings and specifications, the specifications shall
'govern. In case of discrepancy in the figures, in the drawings, or in the specifications, the matter shall be
promptly submitted to the Architect, who will make a detennination in writing. Any adjustment by the
Contractor without such a detennination shall be at its own risk and expense. The Architect shall furnish from
time to time such detailed drawings and other infonnation as considered necessary, unless otherwise
provided.
B. Where in the specifications or drawings the words "directed", "required", "ordered", "designated".
"prescribed". or like words are used, it shall be understood that the "direction", "requirement", "order",
"designation". or "prescription", of HND is intended. Similarly the words "apP~Qved," "acceptable,"
Page 5 of 33
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
"satisfactory," or like words shall mean "approved by," or "acceptable to," or "satisfactory to" HND, unless
otherwise expressly stated.
c. Where "as shown," "as indicated," "as detailed, n or words of similar import are used, it is understood that the
reference is made to the drawings accompanying this contract unless stated otherwise. The word "provided"
as used herein shall be understood to mean, "provide complete in place", that is "furnished and installed."
, '.
D. "Shop drawings" means drawings, submitted to the Architect by the Contractor, subcontractor, or any lower
tier subcontractor, showing in detail:
(1.) the proposed fabrication and assembly of structural elements; and
(2.) the installation (Le., form, fit, and attachment details) of materials of equipment. It includes drawings,
diagrams, layouts, schematics, descriptive literature, illustrations, schedules, performance and test
data, and similar materials furnished by the Contractor to explain in detail specific portions of the work
required by the contract. HND may duplicate, use, and disclose in any manner and for any purpose
shop drawings delivered under this contract.
E. The Contractor shall submit to the Architect for approval one reproducible and one opaque copy (unless
otherwise noted) and to HND for record one opaque copy of all shop drawings as called for under the various
headings of these specifications. Deliver the submittal by such method as to assure receipt within two days
of sending. Notify the architect via facsimile on the day the submittal is sent.
F. If this contract requires shop drawings, the Contractor shall coordinate all such drawings, and review them
for accuracy, completeness, and compliance with other contract requirements and shall indicate its approval
thereon as evidence of such coordination and review. Shop drawings submitted to the Architect without
evidence of the Contractor's approval may be retumed for re-submission. HND and the Architect will indicate
an approval or disapproval of the shop drawings and if.,not approved as submitted shall indicate the reasons
therefor. Any work done before such approval shall be at the Contractor's risk. Approval by HND and the
Architect shall not relieve the Contractor from responsibility for any errors or omissions in such drawings, nor
from responsibility for complying with the requirements of this contract, except with respect to variations
described and approved in accordancewith paragraph 9G below.
G. ' If shop drawings show variations from the contract requirements, the Contractor shall describe such
variations in writing, separate from the drawings, at.the time of submission. If the Architect approves any
such variation and HND concurs, HND shall issue an appropriate modification to the contract. If the variation
is minor or does not fnvolve a change in price or in time of performance, however, a modification need not be
issued.
H. ' It shall be the responsibility of the Contractor to make timely requests of the Architect for such large scale
and full size drawings, color schemes, and other additional information, not already in his possession, which
shall be required in the planning and production of the work. Such requests' may be submitted as the need
arises, but each such request shall be fileain ample time to permit appropriate action to be taken by all
parties involved, so as to avoid delay.
I. The Contractor shall submit to the Architect for approval four copies (unless otherwise indicated) of all shop
drawings as called for under the various headings of these specifications. One set (unless otherwise
indicated) of all Shop drawings will be retained by HND, the Architect, and the Owner, and one set will be
returned to the Contractor. As required by HND, the Contractor, upon completing work under this contract,
shall furnish a complete set of all shop drawings as finally approved. These drawings shall show all changes
and revisions made up to the time the work is completed and accepted.
J. This clause shall be included in all subcontracts at any tier. It shall be the responsibility of the Contractor to
ensure that all shop drawings prepared by subGontractors are submitted to the Architect.
Page 6 of 33
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HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
K. The Contractor shall provide with each submittal for approval a certificate attesting that the products or
materials to be supplied are:
(1.) currently and readily available;
(2.), not obsolete or discontinued; and
(3.) not to be discontinued or deleted from the supplier or manufacturers stock within the next calendar
, year.
L. Layouts and Floor Plans provided by HND are diagrammatic only and are intended to illustrate the general
intentions of HND only. They do not show all the work required, exact dimensions, or construction details.
6. As-Built Drawings.
A. "AS-built drawings," as used in this Clause, means drawings submitted by the Contractor or subcontractor at
any tier to show the construction of a particular structure or work as actually completed under the contract. '
"As-built drawings" shall be synonymous with "Record drawings."
B. Within 5 days of notification of substantial completion, the Contractor shall provide the Architect accurate
, information to be used in the preparation of permanent as-built drawings. For this purpose, the Contractor
shall record on one set of contract drawings all changes from the installations originally indicated, and record
final locations of underground lines by depth from finish grade and by accurate horizontal offset distances to
permanent surface improvements such as buildings, curbs, or edges of walks. No final payment will be made
to the contractor until the Architect has received accurate information to be used in the preparation of
permanent as-built drawings.
C. This clause shall be included in all subcontracts. It shall be the responsibility of the Contractor to ensure that
all as-built drawings prepared by subcontractors are submitted to the Architect.
7. Material and Workmanship.
A. All equipment, material, and articles furnished under this contract shall be new and of the most suitable
grade for the purpose intended, unless otherwise specifically provided in this contract. References in the
contract to equipment, material, articles, or patented processes by trade name, make, or catalog number,
shall be regarded as establishing a standard of quality and shall not be construed as limiting competition.
The Contractor may use any equipment, material, article, or process that, in the judgment of, and as
approved by HND and the Architect, is equal to that named in the specifications, unless otherwise
specifically provided in this contract.
B. Approval of equipment and materials:
(1.) The Contractor shall obtain HND and Architect approval of the machinery and mechanical and other
equipment to be incorporated into the work. When requesting approval, the Contractor shall furnish to
the Architect the name of the manufacturer, the model number, and other information concerning the
performance, capacity, nature, and rating of the machinery and mechanical and other equipment.
When required by this contract or by HND, the ~ontractor shall also obtain HND and Architect
approval of the material or articles that the Contractor contemplates incorporating into the work. When
requesting approval, the Contractor shall provide full information concerning the 'material or articles.
Machinery, equipment, material, and articles that do not have the required approval shall be installed
or used at the risk of subsequent rejection.
Page 7 of 33
HND Form 402
(Rev, 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
,
GENERAL CONDITIONS
Project #:
CDBG-03030
(2.) When required by the specifications or HND, the Contractor shall submit appropriately marked
samples (and certificates related to them) for approval at the Contractor's expense, with all shipping
charges pre-paid. The Contractor shall label, or otherwise properly mark on the container, the material
or product represented, its place of origin, the name of the producer, the Contractor's name, and the
identification of the construction project for which the material or product is intended to be. used.
(3.) Certificates shall be submitted in triplicate, describing each sample submitted for approval and
certifying that the material, equipment, or accessory complies with contract requirements. The
certificates shall include the name and brand of the product, name of manufacturer, and the location
where produced.
C. ' Approval of a sample shall not constitute a waiver of HND or the Owner's right to'demand full compliance'
with contract requirements. Materials, equipment, and accessories may be rejected for cause even though
samples have been approved.
D. Wherever materials are required to comply with recognized standards or specifications, such specifications
shall be accepted as establishing the technical qualities and testing methods, but shall not govern the
number of tests required to be made nor modify other contract requirements. HND may require laboratory
test reports on items submitted for approval or may approve materials on the basis of data submitted in
certificates with samples. Check tests will be made on materials delivered for use only as frequently as HND
determines necessary to insure compliance of materials with the specifications. The Contractor will assume
all costs of re-testing materials that faUto meet contract requirements and/or testing materials offered in
substitution for those found deficient.
E. After approval, samples will be kept on the job site until completion of work. They maY' be built into the work
after a substantial quantity of the material~ they represent has been built in and accepted.
F. Prohibition against use of lead-based paint. The Contractor shall comply with the prohibition against the use
of lead-based paint contained in the Lead-BasEld Paint Poisoning Prevention Act (42 U.S.C. 4821-4846) as
implemented by 24 CFR Part 35. '
8. Permits, Licenses, and Codes.
A. The Contractor shall give all notices and comply with applicable laws, ordinances, codes, rules, and
regulations. Notwithstanding the requirement of the Contractor to comply with the drawings and
specifications in the contract, work shall comply with all applicable codes and regulations as amended by any
waivers. Before beginning the work, the contractor shall examine the drawings and specifications for
compliance with all applicable ordinances and codes bearing on the work and shall immediately report any
discrepancy it may discover to HND and the Architect. Where requirements of the drawings and
specifications fail to comply with such applicable ordinances or codes for the new or replaced work, HND will
adjust the contract by change order pursuant to the clause entitled "Changes' herein to conform to such
ordinances or codes, unless waivers in writing covering the difference have been granted by proper
authority.
B. The Contractor shall secure and pay for all permits, fees, and licenses necessary for the proper execution
and completion of the work, whether or not covered by the specifications and drawings for the work.
9. Heaith, Safety, and Accident Prevention.
A. In performing this contract, the Contractor shall:
(1.) Ensure that no laborer or mechanic shall be required to work in surroundings or under working
conditions which are unsanitary, hazardous, or dangerous to his/her health and/or safety as
determined under construction safety and health standards promulgated by the Secretary of Labor by
regulation;
Page 8 of 33
HND Form 402
(Rev, 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
(2.) Protect the lives, health, and safety of other persons;
(3.) Prevent damage to property, materials, supplies, and equipment; and,
(4.) Avoid work interruptions.
B. For these purposes, the Contractor shall:
(1.) Comply with regulations and standards issued by the Secretary of Labor at 29 CFR Part 1926. Failure
to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety
Standards Act (Public Law 91-54, 83 Statute 96), 40 U.S.C. 327 et seq.,
(2.) Include the terms of this clause in every subcontract so that such terms will be binding on each
subcontractor. '
C. The Contractor shall maintain an accurate record of exposure data on all accidents incident to work
performed under this contract resulting in death, traumatic injury, occupational disease, or damage to
property, materials, supplies, or equipment, and shall report this data in the manner prescribed by 29 CFR
1904.
O. HND shall notify the Contractor of any non-compliance with these requirements and of the corrective action
required. This notice, when delivered to the Contractor or the Contractor's representative at the site of the
work, shall be deemed sufficient notice of the non-compliance and corrective action required. After receiving
the notice, the Contractor shall immediately take corrective action. If the Contractor fails or refuses to take
corrective action promptly, HND may issue an order stopping all or part of the work until satisfactory
corrective action has been taken. The Contractor shall not base any claim or request for equitable
adjustment for additional titne or money on any stop order issued under these circumstances.
E. The Contractor shall be responsible for his subcontractors' compliance with the provisions of this clause. The
Contractor shall take such action with respect to any subcontract as HND, the Secretary of Housing and
Urban Development, or the Secretary of Labor shall direct as a means of enfOrcing such provisions.
10. Temporary Heating.
The Contractor shall provide and pay for temporary heating, covering, and enclosures necessary to properly protect
all work and materials against damage by dampness and cold, to dry out the work, and to facilitate the completion
of the work. Any permanent heating equipment used shall be turned over to the Owner in the condition and at the
time required by the specifications.
11. Availability and Use of Utility Services.
A. The Owner shall make all reasonably required amounts of utilities available to the Contractor from existing
outlets and supplies, as specified in the contract. Unless otherwise provided in the contract, the amount of
each utility service consumed shall be charged to or paid for by the Contractor at prevailing rates charged to
the Owner. The Contractor shall carefully conserve any utilities furnished without charge.
B. The Contractor, at its expense and in a manner satisfactory to HND, shall install and maintain all necessary
temporary connections and distribution lines, and all meters required to measure the amount of each utility
used for the ,purpose of determining charges. Before final acceptance of the work by the HND and the
Owner, the Contractor shall remove all the temporary connections, distribution lines, meters, and associated
paraphernalia. '
Page 9 of 33
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
12. Protection of Existing Vegetation, Structures, Equipment, Utilities, and Improvements.
A. The Contractor shall preserve and protect all structures, equipment, and vegetation (such as trees, shrubs,
and grass) on or adjacent to the yvork site, which are not to be removed under this contract, and which do not
unreasonably interfere with the work required under this contract.
B. The Contractor shall only remove trees when specifically authorized to do so, and shall avoid damaging
vegetation that will remain in place. If any limbs or branches of trees are broken during performance of this
contract, or by the careless operation of equipment, or by workmen, the Contractor shall trim those limbs or
branches with a clean cut and paint the cut with a tree-pruning compound as directed by HND.
, C. The Contractor shall protect from damage all existing improvements and utilities at or near the work site or
on adjacent property of a third party, the locations of which are made known to or should be known by the
Contractor. Prior to disturbing the ground at the construction site, the Contractor shall ensure that all
underground utility lines are clearly marked.
D. The Contractor shall shore up,brace, underpin, secure, and protect as necessary all foundations and other
parts of existing structures adjacent to, adjoining, and in the vicinity of the site, which may be affected by the
excavations or other operations connected with the construction of the project.
E. Any equipment temporarily removed as a result of work under this contract shall be protected, cleaned, and
replaced in the same condition as at the time of award of this Contract.
F. New work, which connects to existing work, shall correspond in all respects with that to which it connects
and/or be similar to existing work unless othe/Wise required by the specifications.
G. No structural members shall be altered or in any way weakened without the written authorization of HND and
the Architect, unless such work is clearly specified in the plans or specifications.
H. If the removal of the existing work exposes discolored or unfinished surfaces, or work out of alignment, such
surfaces shall be refinished, or the material replaced as necessary to make the continuous work uniform and
harmonious. This, however, shall not be construed to require the refinishing or reconstruction of dissimilar
finishes previously exposed, or finished surfaces in good condition, but in different planes or on different
levels when brought together by the removal of intervening work, unless such refinishing or reconstruction is
specified in the plans or specifications.
I. The Contractor shall give all required notices to any adjoining or adjacent property owner or other party
before the commencement of any work.
J. The Contractor shall indemnify and save harmless HND, the Architect, and the Owner from any damages on
account of settlement or the loss of lateral support of adjoining property, any damages from changes in
topography affecting drainage, and from all loss or expense and all damages for which HND, the Architect, or
the Owner may become liable in consequence of such injury or damage to adjoining and adjacent structures
and their premises.
K. The Contractor will repair any damage to vegetation, structures, equipment, utilities, or improvements,
inCluding those that are the property of a third party, resulting from failure to comply with the requirements of
this contract or failure to exercise reasonable care in performing the work. If the Contractor fails or refuses to
repair the damage promptly, HND may have the necessary work performed and charge the cost to the
Contractor.
Page 10 of 33
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
13. Temporary Buildings and Transportation of Materials. ,
A. Temporary buildings (e.g., storage sheds, shops, offices, sanitary facilities) and utilities may be erected by the
Contractor only with the approval of HND and the Owner and shall be built with labor and materials fumished by
the Contractor without expense to HND or the Owner. The temporary buildings and utilities shall remain the
property of the Contractor and shall be removed at the Contractor's expense upon ~mpletion of the work. With
the written consent of HND and the Owner, the buildings and utilities may be abandoned and need not be
removed. '
B. The Contractor shall, as directed by HND, use only established,roadways, or use temporary roadways constructed
by the Contractor when and as authorized by HND. When materials are transported in prosecuting the work,
vehicles shall not be loaded beyond the loading capacity recommended by the manufacturer of the vehicle or
prescribed by any federal, state, or local law or regulation. When it is necessary to cross curbs or sidewalks, the
Contractor shall protect them from damage. The Contractor shall repair or pay for the repair of any damaged
curbs, sidewalks, or roads.
14. Clean Air and Water (Applicable to Contracts in Excess, of $100,000).
A. Definition. "Facility" means any building, plant, installation, structure, mine, vessel or other floating craft,
location, or site of operations, owned, leased, or supervised by the Contractor or any subcontractor, used in
the p,erformance of the contract or any subcontract. When a location or site of operations includes more than
one building, plant, installation", or structure, the entire location or site shall be deemed a facility except when
the Administrator, or a designee, of the Environmental Protection Agency (EPA) determines that independent
facilities are collocated in one geographical area.
B. In compliance with regulations issued by the United states Environmental Protection Agency (EPA), 40 CFR
Part 15, pursuant to the Clean Air Act, as amended ("Air Act"), 42 U.S.C. 7401, et seq., the Federal Water
Pollution Control Act, as amended ("Water Act"), 33 U.S.C. 1251, et seq., and Executive Order 11738, the
Contractor agrees to: .'
(1.) Not utilize any facility in the performance of this contract or any subcontract which is listed on the EPA
List of Violating Facilities pursuant to Part 15 of the regulations for the duration of time that the facility
remains on the list;
(2.) Promptly notify HND if a facility the Contractor intends to use in the performance of this contract is on
the EPA List of Violating Facilities or the Contractor, knows that it has been recommended to be placed
on the List;
(3.) Comply with all requirements of the Air Act and the Water Act, including requirements of Section 114
of the Air Act and Section 308 of the Water Act, and all applicable clean air and clean water standards;
and,
(4.) Include or cause to be included the provisions of this clause in every subcontract, and take such action
as HUD may direct as a means of enforcing such provisions.
15. Energy Efficiency.
The Contractor shall comply with all standards and policies relating to energy efficiency which are contained in the
energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Public Law 94-163)
for the State of Georgia. '
16. Inspection and Acceptance of Construction.
A. Definitions. As used in this clause:
(1.) "Acceptance" means the act of HND by which HND and the Architect approve and the Owner
assumes ownerShip of the work performed under this contract. Acceptance may be partial or
complete.
Page 11 of 33
n'
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
-.
GENERAL CONDITIONS
Project#:
CDBG-03030
(2.) "Inspection" means examining and testing the work performed under the contract (including, when
appropriate, raw materials, equipment, components, and intermediate assemblies) to determine
whether it conforms to contract requirements.
(3.) "Testing" means that element of inspection that determines the properties or elements, including
functional operation of m,aterials, equipment, or their components, by the applic;:ltion of established
scientific principles and p"rocedures. .
B. The Contractor shall maintain an adequate qu~lity control system and will ensure that the work perfonned
under the contract conforms to contract requirements. All work is subject to inspection and test by HND and
the Architect at all places and at all reasonable times before acceptance to ensure strict compliance with the
terms of the contract. If HND requires the contractor to work overtime, on weekends or on holidays, the
contractor must first notify HND in writing of the overtime schedule. If HND determines it necessary to have
HND or Architect staff present or on call during the contractor's overtime, the contractor shall reimburse HND
or the Architect for the staff costs at time and half the regular staff rate. Should the contractor fail to
reimburse HND by the next progress payment requested by the contractor, HND shall deduct such
reimbursement from the contractor's next progress payment.
C. HND and Architect inspections and tests are for the benefit of HND and the Owner and do not:
(1.) relieve the Contractor of responsibility for providing adequate quality control measures;
(2.) relieve the Contractor of responsibility for 1055 or damaged material before acceptance;
(3.) constitute or imply acceptance; or,
(4.) affect the continuing rights of the Owner after acceptance of the completed work under paragraph J
below.
D. The presence or absence of HND or the Architect does not relieve the Contractor from any contract
requirement, nor is he authorized to change any term or condition of the specifications without HND's written
authorization. HND shall give all instructions and approvals with respect to the work to the Contractor.
E. The Contractor shall promptly furnish, without additional charge, all facilities, labor, and material reasonably
needed for performing such safe and convenient inspections and tests as may be required by HND. HND
may charge to the Contractor any additional cost of inspection or test when work is not ready at the time
specified by the Contractor for inspection or test, or when prior rejection makes re-inspection or retest
necessary. HND shall perform all inspections and tests in a manner that will not unnecessarily delay the
work. Special, full size, and perfonni:mce tests shall be performed as described in the contract.
F. HND and the Architect may conduct routine inspections of the construction site on a daily basis.
G. The Contractor shall,'without charge, replace or correct work found by HND or the Architect not to conform to
contract requirements, unless HND decides that it is in their interest or that of the Owner to accept the work
with an appropriate adjustment in contract price. The Contractor shall promptly segregate and remove
rejected material from the premises.
H. If the Contractor does not promptly replace or correct rejected work, HND may:
(1.) by contract or otherwise,' replace or correct the work and charge the cost to the Contractor;
(2.) terminate for default the Contractor's right to proceed.
I. If any work requiring inspection is covered up without approval of HND, it must, if requested by HND, be
uncovered at the expense of the Contractor. If at any time before final acceptance of the entire work, HND
considers it necessary or advisable to examine work already completed by removing or tearing it out, the
Page 12 of 33
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENlTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
Contractor shall, on request, promptly furnish all necessary facilities, labor, and material. If such work. is
found to be defective or non-conforming in any material respect due to the fault of the Contractor or its
subcontractors, the Contractor shall defray all the expenses of the examination and 'of satisfactory
reconstruction. If, however, such work. is found to meet the requirements of the contract, HND shall make an
equitable adjustment to cover the cost of the examination and reconstruction, including, if completion of the
work was thereby delayed, an extension of time. .
J. The Contractor shall notify HND and the Architect as to the date when in its opinion all or a designated
portion of the work. will be substantially completed and ready for inspection. If HND and the Architect
determine that the state of preparedness is as represented, the inspection will be completed promptly.
Unless otherwise specified in the contract, HND shall accept, as soon as practicable after completion and
inspection, all work required by the contract or that portion of the work HND and the Architect determine and
designate can be accepted separately. Acceptance shall be final and conclusive except for latent defects,
fraud, gross mistakes amounting to fraud, orthe Owner's right under any warranty orguarantee.
17. Use and Possession Prior to Completion.
A. The OWner shall have the right to take possession of or use any completed or partially completed part of the
work.. Before taking possession of or using any work., the Architect shall furnish the Contractor a list of items
of work remaining to be performed or corrected on those portions of the work that the Owner intends to take
possession of or use. However, failure of HND or the Architect to list any item of work shall not relieve the
Contractor of responsibility for complying with the terms of the contract. The Owner's possession or use shall
not be deemed an acceptance of any work under the contract.
B. While the Owner has such possession or use, the Contractor shall be relieved of the responsibility for.
(1.) the loss of or damage to the work resulting from the Owner's possession or use, notwithstanding the
terms of the "Pennits, Licenses, and Codes" clause of this contract;
(2.) all maintenance costs on the areas occupied; and,
(3.) furnishing heat, light, power, and water used in the areas occupied without proper remuneration.
c. If prior possession or use by the Owner delays the progress of the work or causes additional expense to the
Contractor, an equitable adjustment shall be made in the contract price or the time of completion, and the
contract shall be modified in writing accordingly.
18. Warranty of Title.
The Contractor warrants good title to all materials, supplies, and equipment incorporated in the work and agrees to
deliver the premises, together with all improvements thereon, free from any claims, liens or charges, and agrees
further that neither it nor any other person, firm or corporation shall have any right to a lien upon the premises or
anything appurtenant thereto.
19. Warranty of Construction.
A. In addition to any other warranties in this contract, the Contractor warrants, except as provided in paragraph
J of this clause, that work performed under this contract conforms to the contract requirements and is free of
any defect in equipment, material, or workmanship performed by himself, any subcontractor, or supplier at
any tier. This warranty shall continue for a period of one year from the date of final acceptance of the work. If
the Owner takes possession of any part of the work. before final acceptance, this warranty shall continue for
a period of one year from the date that the Owner takes possession.
Page 13 of 33
HND Form 402
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
B. The Contractor shall remedy, at the Contractor's expense, any 'failure to conform, or any defect. In addition,
the Contractor sj'lall remedy, at the Contractor's expense, any damage to the Owner's owned or controlled
real or personal property when the damage is the result of:
,(1.) the Contractor's failure to conform to contract requirements; or
(2.) any defects of equipment, material, workmanShip or design fumished by the Contractor.
C. The Contractor will restore any work damaged in fulfilling the, terms of this clause. The Contractor's warranty
with respect to work repaired or replaced will run for one year from the date of repair or replacement.
D. The Owner shall notify the Contractor, in writing, within a reasonable time after the discovery of any failure,
defect, or damage.
E. If the Contractor fails to remedy any failure, defect, or damage within a reasonable time after receipt of
notice, HND shall have the right to replace, repair, or otherwise remedy the failure, defect, or damage at the
Contractor's expense.
F. With respect to all warranties, express or implied, from subcontractors, manufacturers, or suppliers for work
performed and materials furnished under this contract, the Contractor shall:
(1.) obtain all warranties that would be given in normal commercial practice;
(2.) require all warranties to be executed in wliting, for the benefit of the Owner; and,
(3.) enforce all warranties for the benefit of the Owner.
G. In the event the Contractor's warranty under this clause has expired, the Owner may bring suit at its own
expense to enforce a subcontractor, manufacturer, or supplier warranty.
H. Unless a defect is caused by the negligen'ce of the Contractor or subcontractor at any tier, the Contractor
shall not be liable for the repair of any defective material furnished by the Owner, nor for the repair of any
damage that results from any defect in Owner furnished material.
I. Notwithstanding any provisions herein to the contrary, the establishment of the time periods in paragraphs A
and C above relate only to the specific obligation of the Contractor to correct the work, and have no
relationship to the time within which his obligation to comply with the contract may be sought to be enforced,
nor to the time within which proceedings may be commenced to establish the Contractor's liability with
respect to its obligation other than specifically to correct the work.
J. This warranty shall not limit the Owner's rights under the "Inspection and Acceptance of Construction"
clause of this contract with respect to latent defects, gross mistakeS or fraud.
20. Prohibition Against Liens.
The 'Contractor is prohibited from placing a lien on the property of HND or Augusta-Richmond County, or it's
officers or agents. This prohibition shall apply to all subcontractors at any tier and all material suppliers.
Page 14 of 33
HND Form 402
(Rev _ 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS'
Project #:
CDBG-03030
;- i' , ,~ , j
, 1 _ f:. - - 1, ' -: - - - - - -_~. -~, '.H ~ no H -,' ,ADMINIST~~;rI\:!E REQUIREMENTS -
_ _ L ,_ _ ~~ _ _ I,
1. Contract Period.
The Contractor shall complete all work required under this contract within the time schedule established in the
Notice to Proceed issued by HND.
2. Order of Precedence.
In the event of a conflict between these General Conditions and the Specifications, the General Conditions shall
prevail. In the event of a conflict between the contract and any applicable state or local law or regulation, the state,
or local law or regulation shall prevail; provided that such state or local law or regulation does not conflict with, or is
less restrictive than applicable federal law, regulation, or Executive Order. In the event of stich a conflict, applicable
federal law, regulation, or Executive Order shall prevail.
3. Payments to Contractor. "
A. Payments to the Contractor will be made by HND on behalf of the Owner. HND shall pay the Contractor the
price as provided in this contract.
B. Before any payment is made, an inspection by an HND Rehabilitation Inspector and the Architect must be
performed. HND shall make progress payments approximately every 30 days on the HND-determined value
of work accomplished that meets the standards of quality established, under the contract, as approved by
HND and the Architect. HND may, with the approval of the Director, make more frequent payments to
contractors that are qualified 'small businesses.
C. Before the first progress payment under this contract, the Contractor shall furnish, in such detail as
requested by HND, a breakdown of the total contract price showing the amount for each principal category of
the work, which shall substantiate the payment requested and provide a basis for determining progress
payments. The breakdown shall be approved by HND. If the contract covers more than one project, the
Contractor shall furnish a separate breakdown for each. The values and quantities employed in making up
this breakdown are for determining the amount of progress payments and shall not be construed as a basis
for additions to or deductions from the contract price.
D. The Contractor shall submit, on forms provided by HND, requests for payment showing the value of the work
performed during the period based upon the approved breakdown of the contract price. Such payment
requests shall be submitted only for work completed during that period and are subject to correction and
revision as required. HND, the Architect, and the Owner must approve the estimates prior to payment. If the
contract covers more than one project, the Contractor shall furnish a separate progress payment estimate for
each.
E. The HND payment request shall include the following certification, which shall be signed by the Contractor,
or payment shall not be made:
"' hereby certify, to the best of my knowledge and belief, that:
(1.) The amounts requested are only for performance in accordance with the specifications, terms, and
conditions of the contract;
(2.) Payments to subcontractors and suppliers have been made from previous payments received under
the contract. and timely payments will be made from the proceeds of the payment covered by this
certification, in accordance with subcontract agreements; and,
(3.) This request for progress payments does not include any amounts that the prime contractor intends to
withhold or retain from a subcontractor or supplier in accordance with the terms and conditions of the
subcontract. "
Page 15 of 33
HND Form 402
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
F. Except as otherwise provided in State law, HND shall retain ten (10) percent of the amount of progress
payments until completion and acceptance of all work under the contract; except, that if upon completion of
50 percent of the work, HND, after consulting witli the Architect, determines that the Contractor's
performance and progress are satisfactory, HND may make the remaining payments in full for the work.
subsequently completed. If HND and tlie Architect subsequently determine that the Contractor's performance
and progress are unsatisfactory, HNDshallreinstate the ten (10) percent retainage until such time as HND
and the Architect determine that perform'ance and progress are satisfactory.
G. HND may authorize material delivered on the site and preparatory work. already completed to be taken into
consideration when computing progress payments. Material delivered to the Contractor at locations other
than the site may also be taken into consideration if the Contractor furnishes satisfactory evidence that:
(1.)
(2.)
it has acquired title to such material;
the material is properly stored in a bonded warehouse, storage yard, or similar suitable place as may
be approved by HND;
the material is insured to cover its full value; and
the material will be used to perform this contract.
(3.)
(4.)
H. Before any progress payment that includes delivered material is made, the Contractor shall furnish such
documentation as HND may require assuring the protection of the Owner's interest in such materials. The
Contractor shall remain responsible for such stored material notwithstanding the transfer of title to the
Owner.
I. All material and work. covered by progress payments made shall, at the time of payment become the sole
property of the Owner, but this shall not be construed as: '
(1.) relieving the Contractor from the sole responsibility for all material and work. upon which payments
have been made or the restoration of any damaged work.; or,
(2.) waiving'the right of the Owner to require the fulfillment of all of the terms of the contract.
J. In the event the Contractor's work. has been damaged by other contractors or persons other than employees
of HND, the Architect, or the Owner in,the course of their employment, the Contractor shall restore such
damaged work. without cost to HND or the Owner and seek redress for its damage only from those who
directly caused it.
K. HND shall make the final payment due the Contractor under this contract after:
(1.) completion and final acceptance of all work; and
(2.) presentation of release of all ~Iaims against HND or the Owner arising by virtue of this contract, other
than claims, in stated amounts, that the Contractor has specifically excepted from the operation of the
release. Each such exception shall embrace no more than one claim, the basis and scope of which
shall be clearly defined.
L. The amounts for such excepted claims shall not be included in the request for final payment. A release may
also be required of the aSSignee if the Contractor's claim to amounts payable under this contract has been
assigned.
M. Prior to making any payment, HND may require the Contractor to furnish receipts or other evidence of
payment from all persons performing work. and supplying material to the Contractor, if HND determines such
evidence is necessary to substantiate clai~ed costs.
Page 16 of 33
HND Form 402
'(Rev, 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS'
Project #:
CDBG-03030
N. Prompt Pay Act. This Agreement is intended by the Parties to, and does, supersede any and all provisions of
the Georgia Prompt Pay Act, O.C.G.A. Section '13-11-1, et seq. In the event any provision of this Agreement
is inconsistent with any provis!on of the Prompt Pay Act, the provision of this Agreement shall control.
O. HND shall not:
(1.) determine or adjust any claims for payment or disputes arising thereunder between the Contractor and
its subcontractors or material suppliers; Of,
(2.) withhold any money for the protection of the subcontractors or material suppliers. The failure or refusal
of HND to withhold money from the Contractor shall in nowise impair the obligations of any surety or
sureties under any bonds furnished under this contract. '
4. Contract Modifications.
A. Only HND has authority to modify any term or condition of this contract. Any contract modification shall be
authorized in writing.
B. HND may modify the contract unilaterally:
(1.) pursuant to a specific authorization stated in a contract clause (e.g., Changes); or
(2.) for administrative matters which do not change the rights or responsibilities of the parties (e.g.,
changes in addresses). All other contract modifications shall be in the form of supplemental
agreements signed by HND, the Contractor, and the Owner.
, C. When a proposed modification requires the approval of the Augusta-Richmond County Commission prior to
its issuance (e.g., a change .order that exceeds the Owner's approved threshold), modification shall not be
effective until the required approval is received by HND.
5. Changes.
A. HND may at any time, without notice to the sureties, by written order indicated to be a change order, make
changes in the work. within the general scope of the contract including changes:
(1.) in the specifications (including drawings and designs);
(2.) in the method or manner of performance of the work;
(3.) owner furnished facilities, equipment, materials, services, or site; or,
(4.) directing the acceleration in the performance of the work.
B. Any other written order or oral order (which, as used in this paragraph, includes direction, instruction,
interpretation, or determination) from HND that causes a change shall be treated as a change order;
provided, that the Contractor gives HND written notice stating:
(1.) the date, circumstances and source of the order; and
(2.) that the Contractor regards the order as a change order.
C. Except as provided in this clause, no order, statement, or conduct of HND shall be treated as a change
under this clause or entitle the Contractor to an equitable adjustment.
Page 17 of 33
GENERAL CONDITIONS
Project #:
CDBG-03030
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
D. If any change under this clause caus~s an increase or decrease in the Contractor's cost or the time required
for the performance of any of the work under this contract, whether or not changed by any such order, HND
shall make an equitable adjustment and modify the contract in writing. However, except for an adjustment
based on defective specifications, no proposal for any change under paragraph B above shall be allowed for
any costs incurred more than 20 days (5 days for oral orders) before the Contractor gives written notice as
.required. In the case of defective specifications for which HND or the Architect is responsible, the equitable
adjustment shall include any increased cost reasonably incurred by the Contractor in 'attempting to comply
with the defective specifications. '
E. The Contractor must assert its right to an adjustment under this clause within 30 days after:
(1.) receipt of a written change order under paragraph A of this clause; or
(2.) the furnishing of a written notice under paragraph B of this Clause, by submitting a written statement
describing the general nature and the amount of the proposal.
F. If the facts justify it, HND may extend the period for submission. The proposal may be included in the notice
required under paragraph B above. No proposal by the Contractor for an equitable adjustment shall be
allowed if asserted after final payment under this contract.
G. The Contractor's written proposal for equitable adjustment shall be submitted in the form of a lump sum
proposal supported with an itemized breakdown of all increases and decreases in the contract in at least the
following details:
H. Direct Costs. Materials (list individual items, the quantity and unit cost of each, and the aggregate cost);
Transportation and delivery costs associated with materials; Labor breakdowns by hours or unit costs
(identified with specific work to be perfornied); Construction equipment exclusively necessary for the change;
Costs of preparation and/or revision to shop drawings resulting from the change; Worker's Compensation
and Public Liability Insurance; Employment taxes under FICA and FUTA; and, Bond Costs - when size of
, change warrants revision.
I. Indirect Costs. Indirect costs may include overhead, general and administrative expenses, and fringe
benefits not normally treated as direct costs.
J. Profit. The amount of profrt. shall be negotiated and may vary according to the nature, extent, and complexity
of the work required by the change.
K. The allowabillty of the direct and indirect costs shall be determined in accordance with the Contract Cost
Principles and Procedures for Commercial Firms in Part 31 of the Federal Acquisition Regulation (48 CFR 1-
31), as implemented by HUD Handbook 2210.18, in effect on the date of this contract. The Contractor shall
not be allowed a profit on the profit re"ceived by any subcontractor. Equitable adjustments for deleted work
shall include a credit for profit and may include a credit for indirect costs. On proposals covering both
increases and decreases in the amount of the contract, the application of indirect costs and profit shall be on
the net-change in direct. costs for the Contractor or subcontractor perfonning the work.
L. The Contractor shall include. in the proposal its request for time extension (if any), and shall include sufficient
information and dates to demonstrate whether and to what extent the change will delay the completion of the
contract in its entirety.
M. HND shall act. on proposals within 30 days after their receipt, or notify the Contractor of the date when such
action will be taken.
Page 18 of 33
HND Form 402
(Rev, 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENE~L CONDITIONS
Project #:
CDBG-03030
N. Failure to reach an agreement on any proposal shall be a dispute under the clause entitled "Disputes"
herein. Nothing in this clause, however, shall excuse the Contractor from proceeding with the contract as
changed.
O. Except in an emergency endangering life or property, no change shall be made by the Contractor without a
prior order from HND.
6. Suspension of Work.
A.' HND may order the Contractor in writing to suspend, delay, or interrupt all or any part of the work of this
contract for the period of time that HND determines appropriate for the convenience of HND or the Owner.
B. If the performance of all or any part ofthe work is, for an unreasonable period of time, suspended, delayed;
or interrupted:
(1.) By an act of HND in the administration ofthis contract; or
(2.) By HND's failure to act within the time specified in this contract (or within a reasonable time if not
specified);
an adjustment shall be made for any increase in the cost of performance of the contract (excluding profit)
necessarily caused by such unreasonable suspension, delay, or interruption and the contract modified in
writing accordingly. However, no adjustment shall be made under this clause for any suspension, delay, or
interruption to the extent that performance would have been so suspended, delayed, or interrupted by any
other cause, including the fault or negligence of the Contractor or for which any equitable adjustment is
provided for or excluded under any other provision of this contract.
C. A claim under this clause shall not be allowed:
(2.)
For any costs incurred more thari 20 days before the Contractor shall have notified HND in writing of
the act or failure to act involved (but this requirement shall not apply as to a claim resulting from a
suspension order); and, '
Unless the claim, in an amount stated, is asserted in writing as soon as practicable after the
termination of the suspension, delay, or interrUption, but not later than the date of final payment under
the contract.
(1.)
7. Disputes.
A. "Claim," as used in this clause, means a written demand or assertion by one 'of the contracting parties
seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of
contract terms, or other relief arising under or relating to the contract. A claim arising under the contract,
unlike a claim relating to the contract, is a claim that can be resolved under a contract clause that provides
for the relief sought by the claimant. A voucher, invoice, or other routine request for payment that is not in
dispute when submitted is not a claim. The submission may be converted to a claim by complying with the
requirements of this clause, if it is disputed either as to liability or amount or is not acted upon in a
reasonable time.
B. Except for disputes arising under the clauses entitled "Labor Standards" and "Labor Standards - Non-
routine Maintenance", all disputes arising under or relating to this contract, including any claims for
damages for the alleged breach thereof which are not disposed of by agreement, shall be resolved under this
clause.
C. All claims by the Contractor shall, be made in writing within ten (10) calendar days from the date of the
occurrence of the dispute and submitted to HND for a written decision. A claim by the Owner against the
Page 19 of 33
HND Form 402
(Rev,06f03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
Contractor shall be subject to a written decision by HND. All claims by the Contractor shall be made in writing
and submitted to HND for a written decision.
D. HND shall, within 60 days after receipt of the request, decide the claim or notify the Contractor of the date by
which the decision will be made.
E. HND's decision shall be final unless the Contractor:
(1.) appeals in writing to the HND Director in accordance with HND's policies and procedures;
(2.) refers the appeal to the County Administrator for indep~ndent mediation or arbitration in accordance
with HND's policies and procedures; or
(3.) files suit in the Superior Court of Richmond County, Georgia. The Contractor, by executing this
Agreement, specifically consents to venue in Richmond County and waives any right to contest the
venue in the Superior Court of Richmond County, Georgia.
F. Such appeal must be made within 14 days after receipt of HND's decision.
G. The Contractor shall proceed diligently with perfonnance of this contract, pending final resolution of any
request for relief, claim, appeal, or action arising under or relating to the contract, and comply with any
decision of HND. '
8. Default.
A. HND may declare, the Contractor in default by written notice thereof to the Contractor, and terminate the
whole or any part of this Contract for any of the following reasons:
(1.) Failure to begin work within the time specified in the Contract or as otherwise specified;
(2.) Failure to perform the work with sufficient labor, equipment, or material to insure the completion of the
specified work in accordance with the Contract tenns;
(3.) Unsatisfactory performance of the work;
(4.) Failure or refusal to remove material, or remove and replace any work rejected as defective or
unsatisfactory;
(5.) Discontinuance of work without approval;
(6.) Failure to resume work, which has been discontinued, within a reasonable time 'after notice to do so;
(7.) Insolvency or bankruptcy;'
(8.) Assignment made for the benefit of creditors;
(9.) Failure or refusal within 10 days after payment by HND or upon' written notice by HND, to make
payment or show cause why payment should not be made, of any amounts due for materials
furnished, labor performed, equipment rentals, or utility services rendered;
(10.) Failure to protect, to repair, or to make good any damage or injury to property; or
(11.) Breach of any provision of this Contract.
B. In the event that HND terminates this Contrad in whole or in part as provided in Subparagraph A above,
HND may procure, upon such tenns and in such manner as it detennines, services similar or identical to
those so tenninated, and the Contractor shall be liable to HND for any reasonable excess costs for such
similar or identical services included within the tenninated part of the Contract.
Page 20 of 33
HND Form 402
(Rev, 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
C. If the Contract is terminated as provided in Subparagraph A above, HND, in addition to any other rights
provided in this paragraph. may require the Contractor to transfer title and deliver immediately to the Owner
in the manner and to the extent directed by HND, such partially completed work, including, where appiicable,
reports, working papers and other documentation. as the Contractor has specifically produced or specifically
acquired for the performance of such part of the Contract as has been terminated. Payment for completed
work accepted by HND shall 'be at the Contract price. Except as provided below, payment for partially
completed work including reports and working papers, delivered to and accepted by HND shall be in an
amount agreed upon by the Contractor and HND. HND may withhold from amounts otherwise due the
Contractor for such completed or partially completed works. such sum as HND determines to be necessary,
to protect HND and the Owner against loss.
D. The, rights and remedies of HND provided in this paragraph shall not be exclusive and are in- addition to any
other rights and remedies provided by law or under this Contract. '
E. HNO failure to exercise any rights or remedies provided in this paragraph shall not be construed to be a
waiver by HND of its rights and remedies in regard to the event of default or any succeeding event of default.
F. The Contractor's right to proceed sh,all not be terminated or the Contractor charged with damages under this
clause if the delay in completing the work arises from unforeseeable causes beyond the control and without
the fault or negligence of the Contractor. Examples of such causes include:
(1.)
(2.)
(3.)
(4.)
(5.)
(6.)
(7.)
(8.)
(9.)
(10.)
(11.)
acts of God, or of the public enemy;
acts of the Owner, HND, or other governmental entity in either its sovereign or contractual capacity;
acts of another contractor in the performance of a contract with HND or the Owner;
fires;
floods;
epidemics;
quarantine restrictions;
strikes;
freight embargoes;
unusually severe weather; or
delays of subcontractors or suppliers at any tier arising from unforeseeable causes beyond the control
and without the fault or negligence of both the Contractor and the subcontractors or suppliers.
G. The Contractor, within 10 days from the beginning of such delay (unless extended by HND) must notify HND
in writing of the causes of delay. HND shall ascertain the facts and the extent of the delay. If. in the judgment
of HND, the findings of fact warrant such action, time for completing the work shall be extended by written
modification to the contract. The findings of HND shall be reduced to a written decision that shall be subject
to the provisions of the "Disputes" clause of this contract.
H. If, after termination of the Contractor's right to proceed. it is determined that the Contractor was not in
default, or that the delay was excusable, the rights and obligations of the parties will be the same as if the
termination had been for convenience of HND and the Owner.
Page 21 of 33
....
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
9. liquidated Damages.
A. If the Contractor fails to complete the work within the time specified in the contract, or any extension, as
specified in the clause entitled "Default" of this contract, the Contractor shall pay to the Owner, as liquidated
damages, the sum of $100.00 for each day of delay. If different completion dates are specified in the contract
for separate parts or stages of the work, the amount of liquidated damages shall be assessed on those parts
or stages which are delayed. To the extent that the Contractor's delay or nonperfonnance is excused under
another clause in this contract, liquidated damages shall not be due the Owner. The Contractor remains
liable for damages caused other than by delay.
B. If HND tenninates the Contractor's right to proceed, the resulting damage will consist of liquidated damages
until such reasonable time as may be required for final completion of the work together with any increased
costs occasioned HND in completing the work.
C. If HND does not tenninate the Contractor's right to proceed, the resulting damage will consist of liquidated
damages until the work is completed or accepted.
10. Termination for Convenience.
A. HND may tenninate this contract in whole, or in part, whenever HND detennines that such tennination is in
the best interest of HND and the Owner. Any such tennination shall be effected by, delive!)' to the Contractor
of a Notice of Tennination specifying the extent to which the perfonnance of the work under the contract is
tenninated, and the date upon which such tennination becomes effective.
B. If the perfonnance of the work is tenninated, either in whole or in part, HND and the Owner shall be liable to
the Contractor for reasonable and proper costs resulting from such tennination upon the receipt by HND of a
properly presented claim setting out in detail:
(1.) the total cost of the work perfonned to date of tennination less the total amount of contract payments
made to the Contractor;
(2.) the' cost (including reasonable' profit) of settling and paying claims under subcontracts and material
orders for work perfonned and materials and supplies delivered to the site, payment for which has not
been made by HND to the Contractor or by the Contractor to the subcontractor or supplier;
(3.) the, cost of preserving and protecting the work already perfonned until the Owner or assignee takes
possession thereof or assumes responsibility therefor;
(4.) the actual or estimated cost of legal and accounting services reasonably necessa!)' to prepare and
present the tennination claim to HND; and
(5.) an amount constituting a reasonable profit on the value of the work perfonned by the Contractor.
C. HND will act on the Contractor's claim within 60 days of receipt of the Contractor's claim.
D. Any-disputes with regard to this clause are expressly made subject to the provisions of the "Disputes"
clause of this contract. '
11. Assignment of Contract.
A. Subject to the tenns and conditions of this Contract, this Contract shall be binding upon the parties and their
respective successors and assigns.
Page 22 of 33
- '
HND Form 402
(Rev, 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
B. The Contractor shall not subcontract with any person or entity to perform all or any part of the work to be
performed under this Contract without the prior written consent of HND, which consent may be withheld at
the sole and absolute discretion of HND.
C. The Contractor may not, assign, in whole or in part, this Contract or its rights, duties, obligations, or
responsibilities hereunder without the prior written consent of HND, which consent may be withheld at the
sole and absolute discretion of HND.
D. The Contractor may not, without the consent of HND, assign its rights to payment to be received under the
Contract.
E. For the purposes of this Contract, the t~rm "assign" shall include, but shall not be limited to, the sale, gift,
assignment, pledge, or other transfer of any ownership interest in the Contractor provided, however, that the
term shall not apply to the sale or other transfer of stock of a publicly traded company.
F. Any assignment consented to by HND shall be evidenced by a written assignment agreement executed by
the Contractor and its assignee in which the assignee agrees to be legally bound by all of the terms and
conditions of the Contract and to assume the duties, obligations, and responsibilities being assigned.
G. A change of name by the Contractor, following which the Contractor's federal tax identification
number remains unchanged, shall not be cOUlsidered to be an assignment hereunder. The Contractor
shall give HND written notice of any such change of name.
12. Insurance and Bonds.
A. Before commencing work, the Contractor and each subcontractor shallfumish HND with certificates of
insurance showing the following insurance is in force and will insure all operations under the Contract:
(1.) Workers' Compensation, in accordance with State of Georgia Workers' Compensation laws.
(2.) Commercial General Liability with a combined single limit for bodily injury and property damage of not
less than $1,000,000 amount] per occurrence to protect the Contractor and each subcontractor
against claims for bodily injury or death and damage to the property of others. This shall cover the use
of all equipment, hoists, and vehicles on the site(s) not covered by Automobile Liability under (3)
below. If the Contractor has a "claims-made" policy, then the following additional requirements apply:
the policy must provide a "retroactive date" which must be on or before the execution date of the
Contract; and the extended reporting period may not be less than five years following the completion
date of the Contract. '
(3.) Automobile Liability on owned and non-owned motor vehicles used on the site(s) or in connection
therewith for a combined single limit for bodily injury and property damage of not less than $1,000,000
per occurrence.
B: Before commencing work, the Contractor shall furnish HND with a certificate of insurance evidencing that
Builder's Risk (fire and extended coverage) Insurance on all work in place and/or materials stored at the
building site(s), including foundations and buildilig equipment, is in force. The Builder's Risk Insurance shall
be for the benefit of the Contractor and the Owner as their interests may appear and each shall be named in
the policy or policies as an insured. The Contractor in installing equipment supplied by the Owner shall carry
insurance on such equipment from the time the Contractor takes possession thereof until HND and the
Owner accept the Contract work. The Builder's Risk Insurance need not be carried on excavations, piers,
footings, or foundations until such time as work on the superstructure is started. It need not be carried on
landscape work. Policies shall furnish coverage at all times for the full cash value of all completed
construction, as well as materials in place and/or stored at the site(s), whether or not partial payment has
Page 23 of 33
HND Form 402
(Rev, 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
.
GENERAL CONDITIONS
Project #:
CDBG-03030
been made by HND. The Contractor may terminate this insurance on buildings as of the date taken over for
occupancy by the Owner. The Contractor is not required to carry Builder's Risk Insurance for modemization
work that does not involve structural alterations or additions and where the Owner's existing fire and
extended coverage policy can be endorsed to include such work.
C. Prior to signing of the Construction Contract, the Contractor must furnish a Performance Bond and Labor and
Material Payment Bond covering the faithful performance of the Contract and the payment of all obligations
arising thereunder, issued at 100% of the Contract. Amount for all coverages. The Performance Bond and the
Labor and Material Payment Bond may be in one, or may be in separate instruments, in accordance with
local law.
D. The Contractor shall furnish copies of all insurance certificates to HND before commencing with the work,
showing evidence of coverage and naming as additional insured to the policies the Owner, induding their
respective Commissioners, Board Members, Officers, Agents and Employees, individually and collectively.
The contractor shall not be allowed to commence work until the required certificates are provided to HND.
Additionally, should the insurance become ineffective or lapse during construction, HND shall require the
contractor to cease work until such time as the contractor submits proof of insurance in compliance with the
requirements of this contract. If such suspension of work is necessary, the contractor stiall not be entitled to
addition time to complete the work.
E. All insurance shall be carried with companies that are financially responsible and admitted to do business in
the State of Georgia. If any such insu~ance is due to expire during the construction period, the Contractor
(indudirig subcontractors, as applicable) shall not permit the coverage to lapse and shall fumish evidence of
coverage to HND.AII certificates of insurance, as evidence of coverage, shall provide that no coverage may
be canceled or non-renewed by the insurance company until at least 30 days prior written notice has been
given to HND.
13. Subcontracts.
A. Definitions. As used in this contract:
(1.) ,"Subcontract" means any contract, purchase order, or other purchase agreement, induding
modifications and change orders to the foregoing, entered into by a subcontractor to furnish supplies,
materials, equipment, and services for the performance of the prime contract or a subcontract.
(2.) "Subcontractor" means any supplier, vendor, or firm that furnishes supplies, materials, equipment,
and services for the performance of the prime contract or a subcontract.
B. No subcontract for assignm,ent of this contract shall be made without the written consent of HND.
C. The Contractorshall not enter into any subcontract with any subcontractor who has been denied participation
in any HND or HUD program or who has been suspended or debarred from participating in contracting
programs by Augusta-Richmond County, HND, HUD, or any other agency of the United States Govemment
or of the State of Georgia.
D. The Contractor shall be fully responsible for the acts or omissions of its subcontractors, and of persons either
directly or indirectly employed by them as for the acts or omissions of persons directly employed by the
Contractor.
E. The Contractor shall insert appropriate clauses in all subcontracts to bind subcontractors to the terms and
conditions of this contract insofar as they are applicable to the work of subcontractors.
Page 24 of 33
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
F. Nothing contained in this contract shall create any contractual relationship between any subcontractor and
HNDor between any subcontractor and the Owner.
14. Subcontracting with Small and Minority Firms, Women's Business Enterprise, and Labor Surplus Area
Firms.
The Contractor shall take the following steps to ensure that, whenever possible, subcontracts are awarded to small
business finns, minority finns, women's business enterprises, and labor surplus area finns:
A. Placing qualified small and minority businesses and women's business enterprises on solicitation lists;
B. Ensuring that small and minority businesses and women's business enterprises are solicited whenever they
are potential sources;
C. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum
participation by small and minority businesses and women's business enterprises;
O. Establishing delivery schedules, where the requirements of the contract permit, which encourage
participation by small and minority,businesses and women's business enterprises; and
E. USing the services and assistance of the U.S. Small Business Administration, the Minority ,Business
Development Agency of the U.S. Department of Commerce, and State and local governmental small
business agencies.
15. Equal Employment Opportunity.
A. During the perfonnance of this contract, the Contractor agrees as follows:
(1.) The Contractor shall not discriminate against any employee or applicant for employment because of
race, cotor, religion, sex, national origin, or handicap.
(2.) , The Contractor shall take affinnative action to ensure that applicants are employed, and that
employees are treated during employment without regard to their nice, color, religion, sex, national
origin, or handicap. Such action shall include, but not be limited to:
(a) employment;
(b) upgrading;
(c) demotion;
(d) transfer;
(e) recruitment or recruitment advertising;
(f) layoff or tennination;
(g) rates of payor other fonns of compensation; and
(h) selection for training, including apprenticeship.
B. The Contractor shall post in conspicuous, places available to employees and applicants for employment the
notices to be provided by HND that explain this clause.
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(Rev,06f03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
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C. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the
Contractor, state that all qualified applicants will receive consideration for employment without regard to race,
coloc, religion, sex, national origin, or handicap.
D. The Contractor shall send, to each labor union or representative of workers with which it has a collective
bargaining agreement or ,other contract or understanding, the notice to be provided by HND advising the
labor union or workers' representative of the Contractor's commitments under this clause, and post copies of
the notice in conspicuous places available to employees and applicants for employment.
E. The Contractor shall comply with Executive Order 11246, as amended, and the rules, regulations, and orders
of the Secretary of Labor.
F. The Contractor shall furnish all information and reports required by Executive Order 11246, as amended,
Section 503 of the Rehabilitation Act of 1973, as amended, and by rules, regulations, and orders of the
Secretary of Labor, or pursuant thereto. The Contractor shall permit access to its books, records, and
accounts by the Secretary of Labor for purposes of investigation to ascertain compliance with such rules,
regulations, and orders. '
G.' In the event of a determination that the Contractor is not in compliance with this clause or any rule,
regulation, or order of the Secretary of Labor, this contract may be canceled, terminated, or suspended in
whole or in part, and the Contractor may be declared ineligible for further Government contracts, or Federally
assisted construction contracts under the procedures authorized in Executive Order 11246, as amended. In
addition, sanctions may be imposed and remedies invoked against the Contractor as provided in Executive
Order 11246, as amended, the rules, regulations, and orders of the Secretary of Labor, or as otherwise
provided by law.
H. The Contractor shall include the terms and conditions of this clause in every subcontract or purchase order
unless exempted by the rules, regulations, or orders of the Secretary of Labor issued under Executive Order
11246, as amended, so that these terms and conditions will be binding upon each subcontractor or vendor.
The Contractor shall take such action with respect to any subcontract' or purchase order as the Secretary of
Housing and Urban Development or the Secretary of Labor may direct as a means of enforcing such
provisions, including sanctions for~oncompliance; provided that if the Contractor becomes involved in, or is
, threatened with, litigation with a subcontractor or vendor as a result of such direction, the Contractor may
request the United States to enter into the litigation to protect the interests of the United States.
16. Employment, Training, and Contracting Opportunities for Low-Income Persons, Section 3 of the Housing
and Urban Development Act of 1968. '
A. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and
Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is to
ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted
projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income
persons, particular1y persons who are recipients of HUD assistance for housing.
B. The parties to this contract agree to comply with HUD regulations in 24 CFR part 135, which implement
section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are
under no contractual or other impediment that would prevent them from complying with the part 135
regulations. '
C. The contractor agrees to send to each labor organization or representative of workers with which the
contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor
organization or workers representative of the contractors commitments under this section 3 clause, and will
post copies of the notice in conspicuous places at the work site where both employees and applicants for
Page 26 of 33
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
training and employment positions can see the notice. The notice shall describe the section 3 preference,
shall set' forth minimum number and job titles subject to hire, availability of apprenticeship and training
positions, the qualifications for each; and the name and location of the person(s) taking applications for each
of the positions; and the anticipated date the work shall begin.
D. The contractor agrees to include this Section 3 clause in every subcontract subject to, compliance with
'regulations in 24 CFR part 135, and agrees to take appropriate action, as provided iri an applicable provision
of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the
regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the
contractor has knowledge that the. subcontractor has been found in violation of the regulations in 24 CFR
part 135.
E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1)
after the contractor is selected but before the contract is executed, and (2) with persons other than those to
whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to
circumvent the contractors obligations under 24 CFR part 135.
F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this
contract for default, and debarment or suspension from future HUD assisted contracts.
G. In the event of a determination by HND that the Contractor is not in compliance with this clause or any rule,
regulation, or report submission requirements of HND, this contract may be canceled, terminated. or
suspended in whole or in part, and the Contractor may be declared ineligible for further HND contracts.
17. Interest of Members of Congress.
No member of or delegate to the Congress of the United States of America shall be admitted to any share or part of
this contract orto any benefit that may arise therefrom.
18. Interest of Members, Officers, or Employees and Fonner Members, Officers, or Employees.
No member, officer, or employee of HND. the Owner, no member of the governing body of Augusta-Richmond
County, and no other public official of Augusta-Richmond County who exercises any functions or responsibilities
with respect to the project, shall. during his or her tenure, or for one year thereafter, have any interest, direct or
indirect. in this contract or the proceeds thereof.
19. Limitations on Payments Made to Influence Certain Federal Financial Transactions.
A. The Contractor agrees to comply with Section 1352 of title 31, United States Code which prohibits the use of
Federal appropriated funds to pay any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, and officer or employee of Congress, or an employee of a
Member of Congress in connection with any of the following covered Federal actions: the awarding of any
Federal contract; the making of any Federal grant; the making of any Federal loan; the entering into of any
cooperative agreement; orthe modification of any Federal contract, grant, loan. or cooperative agreement.
B. The Contractor further agrees to comply with the requirement of the Act to furnish a disclosure (OMB
Standard Form LLL. Disclosure of Lobbying Activities) if any funds other than Federal appropriated funds
(including profit or fee received under a covered Federal transaction) have been paid. or will be paid, to any
person for influencing or attempting to influence an office'r or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with
a Federal contract, grant, loan, or cooperative agreement.
Page 27 of 33
\
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(Rev, 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
,
Project #:
CDBG-03030
C. Indian tribes (except those chartered by states) and Indian organizations as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450B) are exempt from the requirements of this
clause. '
20. Royalties and Patents.
The Contractor shall pay all royalties and license fees. It shall defend all suits or claims for infringement of any
patent rights and shall save HND and the Owner harmless from loss on account thereof; except that HND, the
Architect, and the Owner shall be responsible for all such loss when a particular design, process or the product of a
particular manufacturer or manufacturers is specified and the Contractor has no reason to believe that the specified
design, process, or product is an infringement. If, however, the Contractor has reason to believe that any design,
process or product specified is an infringement of a patent, the Contractor shall promptly notify HND. Failure to give
such notice shall make the Contractor responsible for resultant loss.
21. Examination and Retention of Contractor's Records.
A. HND, HUD, or the Comptroller General of the United States, or any of their duly authorized representatives '
shall, until 3 years after final payment under this contract, have access to and the right to examine any of the
Contractor's directly pertinent books, documents, papers, or other records involving transactions related to
this contract for the purpose of making audit, examination, excerpts, and transcriptions.
B. The Contractor agrees to include in first-tier subcontracts under this contract a clause substantially the same
as paragraph (a) above. "Subcontract, n as used in this clause, excludes purchase orders not exceeding
$10,000.
C. The periods of access and examination in paragraphs A and B above for records relating to (1) appeals
under the "Disputes" clause of this contract, (2) litigation or settlement of claims arising from the
pelformance of this contract, or (3) costs and ,expenses of this contract to which HND, HUD, or Comptroller
General or any of their duly authorized representatives has taken exception shall continue until disposition of
such appeals, litigation, claims, or exceptions.
22. Labor Standards - Davis-Bacon and Related Acts.
If the total amount of this contract exceeds $2,000, the Federal labor standards set forth in the clause below shall
,apply to the construction work to be pelformed under the contract, except if the construction work has been
determined to be "Non-routine Maintenance" subject to the terms of that clause of this contract.
23. Minimum Wages.
A. All laborers and mechanics employed or working upon the site of the work (or, under the United States
Housing Act of 1937 or under the Housing Act of 1949; in the construction or development of the project) will
be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on
any account (except such payroll deductions as are permitted by regulations issued by the Secretary of
Labor under the Copeland Act (29 CFR Part 3)), the full amount of wages and bona fide fringe benefrts (or
cash equivalents thereof) due at time of payment computed at rates not less than those contained in the
wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of
any contractual relationship which may be alleged to exist between the Contractor and such laborers and
mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under Section
1 (b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such
laborers or mechanics, subject to the provisions of 29 CFR 5.5(a)(1)(iv); also, regular contributions made or
Page 28 of 33
HND Form 402
(Rev, 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or
programs, which cover the regular weekly period, are deemed to be constructively made or incurred during
such weekly period. Such laborers and mechanics shall be paid not less than the appropriate wage rate and
fringe benefits in the wage determination for the classification of work actually performed, without regard to
skill, except as provided in 29 CFR Part 5.5(a)(4). Laborers or mechanics performing work in more than one
classification may be, compensated at the rate specified for each classification for the time actually worked
therein; provided, that the employer's payroll records accurately' set forth the time spent in each classification
in which work is performed. The wage determination (including any additional classification and wage rates
conformed under 29 CFR 5.5(a)(1)(iij and the Davis-Bacon poster (WH-1321) shall be posted at all times by
, the Contractor and its subcontractors at the site of the work in a prominent and accessible place where it can
be easily seen by the workers.
B. Any class of laborers or mechanics which' is not listed in the wage determination and which is to be
employed under the contract shall be classified in conformance with the wage determination. HUD shall
approve an additional classification and wage rate and fringe benefits therefor only when all the following
criteria have been met:
(1.) The work to be performed by the classification requested is not performed by a classification in the
wage determination;
(2.) The classification is utilized in the area by the construction industry; and
(3.) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to
the wag,e ratescontained'in the wage determination.
C. If the Contractor and the laborers and mechanics to be employed in the classification (if known), or their
representatives, and HUD or its designee agree on the classification and wage rate (including the amount
designated for fringe benefits where appropriate), a report of the action taken shall be sent by HUD or its
designee to the Administrator of the Wage and Hour Division, Employee Standards Administration, U.S.
Department of Labor, Washington, DC 20210. The Administrator, or an authorized representative, will
approve, modify,' or disapprove every'additional classification action within 30 days of receipt and so advise
HUD or its designee or will notify HUD or its designee within the 30-day period that additional time is
necessary .
D. In the event the Contractor, the laborers or mechanics to be employed in the classification or their
representatives, and HUD or its designee do not agree on the proposed classification and wage rate
(including the amount designated for fringe benefits, where appropriate), HUD or its designee shall refer the
questions, including the views of all interested parties and the recommendation of HUD or its designee, to
the Administrator of the Wage and Hour Division for detennination. The Administrator, or an authorized
representative, will issue a determination within 30 days of receipt and so advise HUD or its designee or will
notify HUD or its designee within the 30-day period that additional time is necessary.
E. The wage rate' (including fringe benefrts where appropriate) determined pursuant to subparagraphs (b)(2)(ii)
or (Hi) of this clause shall be paid to all workers performing work in the classification under this contract from
the first day on which work is performed in the eJassification.
F. Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a
fringe benefit which is notexpressed as an hourly rate, the Contractor shall either pay the benefit as stated in
the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof.
G. If the Contractor does not make payments to a trustee or other third person, the Contractor may consider as
part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing
bona fide fringe benefits under a plan or: program; provided, that the Secretary of Labor has found, upon the
written request of the Contractor, that the applicable standards of the Davis-Bacon Act have been met. The
Secretary of Labor may require the Contractor to set aside in a separate account assets for the meeting of
obligations under the plan or program.
Page 29 of 33
HND Form 402
(Rev.06f03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
H. Withholding of funds. HUD or its designee shall, upon its own action or upon written request of an authorized
representative of the Department of Labor, withhold or cause to be withheld from the Contractor under this
contract or any other Federal contract with the same prime Contractor, or any other Federally-assisted
contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime Contractor,
so much of the accrued payments or advances as may be ,considered necessary to pay laborers and
mechanics, including apprentices, trainees, and helpers, employed by the Contractor or any subcontractor
the full amount of wages required by the contract. In the event of failure to pay any ,laborer or mechanic,
including any apprentice, trainee, or helper, employed or working on the site of the work (or, under the United
States Housing Act of 1937 or under the Housing Act of 1949, in the construction or development of the
project), all or part of the wages required by the contract, HUD or its designee may, after written notice to the
Contractor, take such action as necessary to cause the suspension of any further payment, advance, or
,guarantee of funds until such violations have ceased. HUD or its designee may, after written notice to the
Contractor, disburse such amounts withheld for and on account of the Contractor or subcontractor to the
respective employees to whom they are due. The Comptroller General shall make such disbursements in the
case of direct Davis-Bacon Act contracts.
24. Payrolls and basic records.
A. Payrolls and basic records relating thereto shall be maintained by the Contractor during the course of the
work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of
the work (or, under the United States Housing Act of 1937 or under the Housing Act of 1949, in the
construction or development of the project). Such records shall contain the name, address, and social
security number of each such worker, his or her correct classification, hourly rates of wages paid (including
rates of contributions or costs anticipated for bona fide fringe, benefits or cash equivalents thereof of the
types described in section 1 (b) (2) (B) of the Davis-Bacon Act), daily and weekly number of hours worked,
deductions made, and actual wages pa,id. Whenever the Secretary of Labor has found, under 29 CFR
5.5(a)(1 )(iv), that the wages of any laborer or mechanic include the amount of costs reasonably anticipated in
providing benefits under a plan or program described in section 1 (b)(2)(B) of the Davis-Bacon Act, the
Contractor shall maintain records which show that the commitment to provide such benefits is enforceable,
that the plan or program 'is financially responsible, and that the plan or program has been communicated in
writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost
incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs
shall maintain written evidence of the registration of apprenticeship programs and certification of trainee
programs, the registration of the apprentices and trainees, and the ratios and wage r~tes prescribed in the
applicable programs.
B. The Contractor shall submit weekly for each week in which any contract work is perfonned a copy of all
payrolls to HND for transmission to HUD or its designee. The payrolls submitted shall set out accurately and
completely all of the infonnation required to be maintained under subparagraph C (1) of this clause. This
infonnation may be submitted in any fonn desired. Optional Fonn WH-347 (Federal Stock Number 029-005-
00014-1) is available for this purpose and may be purchased from the Superintendent of Documents, u.S.
Government Printing Office, Washington, DC 20402. The prime Contractor is responsible for the submission
of copies of payrolls by all subcontractors.
C. Each payroll submitted shall be accompanied by a "Statement of Compliance,. signed by the Contractor or
subcontractor or his or her agentwho pays or supervises the payment of the persons employed under the
contract and shall certify the follOWing:
(1.) That the payroll for the payroll period contains the infonnation required to be maintained under
paragraph C of this clause and that such infonnation is correct and complete;
(2.) That each laborer or mechanic (including each helper. apprentice, and trainee) employed on the
contract during the payroll period has been paid the full weekly wages earned, without rebate, either
directly or indirectly, and that no deductions have been made either directly or indirectly from the full
wages earned, other than pennissible deductions as set forth in 29 CFR Part 3; and
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GENERAL CONDITIONS,
Project #:
CDBG-03030
(3.) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe
benefits or cash equivalents for th'e classification of work performed; as specified in the applicable
wage determination incorporated into the contract.
D. The weekly submission of a properly executed certification set forth on the reverse side of Optional Form
WH-347 shall satisfy the requirements for submission of the .Statement of Compliance" required by
subparagraph C of this clause.
E. The falsification of any of the above certifications may subject the Contractor or subcontractor to civil or
criminal prosecution under Section 1001 of Title 18 and Section 3729 of Title 31 of the United States Code.
F. The Contractor or subcontractor shall, make the records required under subparagraph D available for
inspection, copying, or transcription by authorized representatives of HUD or its designee, HND, or the
Department of Labor and shall permit such representatives to interview employees during working hours on
the job. If the Contractor or subcontractor fails to submit the required records or to make them available,
HUD or its designee may, after written notice to the Contractor, take such action as may be necessary to
cause the suspension of any further payment, advance, or guarantee of funds. Furthennore, failure to submit
the required records upon requeSt or to make such records available may 'be grounds for debarment action
pursuant to 29 CFR 5.12.
G. Apprentices. Apprentices will, be permitted to work at less than the predetermined rate for the wor1< they
performed when they are employed pursuant to and individually registered in a bona fide apprenticeship
program registered with the U.S. Department of Labor, Employment and Training Administration, Bureau of
Apprenticeship and Training, or with a State Apprenticeship Agency recognized by the Bureau, or if a person,
is employed in his or her first 90 days of probationary employment as an apprentice in such an
apprenticeship program, who is not individually registered in the program, but who has been certified by the
Bureau of Apprenticeship and Training or a State Apprenticeship Agency (where appropriate) to be eligible
for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job
site in any craft classification shall not be greater than the ratio permitted to the Contractor as to the entire
work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is
not registered or otherwise employed as stated in this paragraph, shall be paid not less than the applicable
wage rate on the wage determination for the classification of work actually performed. In addition, any
apprentice performing work on the job site in excess of the ratio permitted under the registered program shall
be paid not less than the applicable wage rate on the wage determination for the work actually performed.
Where a contractor is performing construction on a project in a locality other than that in which its program is
registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in
the Contractor's or subcontractor's registered program shall be observ~. Every apprentice must be paid at
not less than the rate specified in the registered program for the apprentice's level of progress, expressed as
a percentage of the journeyman hour1y rate specified in the applicable wage determination. Apprentices shall
be paid fringe benefits in accordance wit~ the provisions of the apprenticeship program. If the apprenticeship
program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on
the wage determination for the' applicable classification. If the Administrator of the Wage and Hour Division
determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid
in accordance with that detennination. In the event the Bureau of Apprenticeship and Training, or a State
Apprenticeship Agency recognized by the Bureau, withdraws approval of an apprenticeship program, the
Contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for
the work performed until an acceptable program is approved.
H. Trainees. Except as provided in 29 CFR 5,'16, trainees will not be permitted to work at less than the
predetennined rate for the work performed unless they are employed pursuant to and individually registered
in a program which has received prior approval, evidenced by formal certification by the U.S. Department of
Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not
be greater than permitted under the plan approved by the Employment and Training Administration. Every
trainee must be paid at not less than the rate specified in the approved program for the trainee's level of
Page 31 of 33
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HND Form 402
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03030
progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage
determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee,
program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of
fringe benefits listed in the wage determination unless the Administrator of the Wage and Hour Division
determines that there is an apprenticeship program associated with the corresponding journeyman wage rate
in the wage determination which provides for less than full fringe benefits for apprentices. Any employee
listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the
Employment and Training Administration shall be paid not less than the applicable wage rate in the wage
determination for the classification of work. actually performed. In addition, any trainee performing work. on
the job site in excess of the ratio permitted under the registered program shall be paid not less than the
applicable wage rate in the wage determination for the work. actually performed. In the event the Employment
and Training Administration withdraws approval of a- training program, the Contractor will no longer be
permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an
acceptable program is approved.
t Equal employment opportunity. The utilization of apprentices, trainees, and journeymen under this clause
shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as
amended, and 29 CFR Part 30.
J. Compliance with Copeland Act requirements. The Contractor shall comply with the requirements of 29 CFR
Part 3, which are hereby incorporated by reference in this contract.
K. Contract termination; debarment. A breach of this contract clause may be grounds for termination of the
contract and for debarment as a Contractor and a subcontractor as provided in 29 CFR 5.12.
L. Compliance with Davis-Bacon and related Act requirements. All rulings and, interpretations of the Davis-
Bacon and' related Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by reference in this
contract.
M. Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this clause
shall not be SUbject to the general dispute clause of this contract. Such disputes shall be resolved in
accordance with the procedures of the Department of Labor set forth in 29CFR Parts 5, 6, and 7. Disputes
within the meaning of this clause include disputes between the Contractor (and any of its subcontractors)
and HND, HUD, the U.S. Department of Labor, orthe employees or their representatives.
25. Certification of eligibility.
A. By entering into this contract, the Contractor certifies that neither it (nor he or she) nor any person or firm
who has an interest in the Contractor's firm is a person or firm ineligible to be awarded contracts by the
United States Government by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
B. No part of this contract shall be subcontra~ed to any person or firm ineligible to be awarded contracts by the
, United States Government by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
C. The penalty for making false statements is prescribed in the U. S. Criminal Code, 18 U.S.C. 1001.
26. Contract Work Hours and Safety Standards Act.
As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards.
Page 32 of 33
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(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
, GENERAL CONDITIONS
Project #:
CDBG-03030
A. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which'
may require or involve the employment of laborers or mechanics, including watchmen and guards, shall
require or pennit any such laborer or mechanic in any workweek in which the individual is employed on such
work to work in excess of 40 hours in such workweek unless such laborer or mechanic receives
compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in
excess of 40 hours in such workweek.
B. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the provisions
set forth in subparagraph J (1) of this clause, the Contractor and any subcontractor responsible therefor shall
be liable for the unpaid wages: In addition, such Contractor and subcontractor shall be liable to the United
States (in the case of work done under contract for the District of Columbia or a tenitory, to such District or to
such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each
individual laborer or mechanic (including watchmen and guards) employed in violation of the provisions set
forth in subparagraph J (1) ofthis clause, in the sum of $10 for each calendar day on which such individual
was required or pennitted to work in excess of the standard workweek of 40 hours without payment of the
overtime wages required by provisions set forth in subparagraph J (1) of this clause.
C. Withholding for unpaid wages and liquidated! damages. HUD or its designee shall upon its own action or
upon written request of an authorized representative of the Department of Labor withhold or cause to be
withheld, from any moneys payable on account of work perfonned by the Contractor or subcontractor under
any such contract or any Federal contract with the same prime Contractor, or any other Federally-assisted
contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime
Contractor such sums as may be detennined to be necessary to satisfy any liabilities of such Contractor or
subcontractor for unpaid wages and liquidated damages as provided in the provisions set forth in
subparagraph J (2) of this clause.
27. Subcontracts. The Contractor or subcontractor shall insert in any subcontracts all the provisions contained in this
clause, and such other clauses as HUD or its designee may by' appropriate instructions require. and also a clause
requiring the subcontractors to include these provisions in any lower tier subcontracts. The prime Contractor shall
be responsible for the compliance by any subcontractor or lower tier subcontractor with all these provisions.
28. Labor Standards - Non-routine Maintenance. Not applicable.
29. Non-Federal Prevailing Wage Rates.
A. Any prevailing wage rate (including basic hourly rate and any fringe benefits), detennined under State law to
be prevailing, with respect to any employee in any trade or position employed' under the contract, is
inapplicable to the contract and shall not be enforced against the Contractor or any subcontractor, with
respect to employees engaged under the contract whenever either of the following occurs:
(1.) Such non-Federal prevailing wage rate exceeds:
(a) the applicable wage rate detennined by the Secretary of Labor pursuant to the Davis-Bacon Act
(40 U.S.C. 276a et seq.) to be prevailing in the locality with respect to such trade;
(b) an applicable apprentice wage rate based thereon specified in an apprenticeship program
registered with the Department of Labor or a DOL-recognized State Apprentice.ship Agency;
(c) an applicable trainee wage rate based thereon specified in a DOL-certified trainee program.
B. Such non-Federal prevailing wage rate, exclusive of any fringe benefits, exceeds the applicable wage rate
detennined by the Secretary of HUD to be prevailing in the locality with respect to such trade or position.
Page 33 of 33
HND Form 403
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
SUPPLEMENTAL CONDITIONS
Project #:
CDBG-03030
1'. Approved Equal:
Whenever a product is defined in this invitation by trade name and catalogue number of a
manufacturer or contractor, the term "or approved equal", if not inserted therewith shall be implied.
Any reference to a particular,manufacturer1s product either by trade name or by limited description
is solely for the' purpose of more clearly indicating the minimum standard of quality desired, except
where a "no substitute" is requested. When a "no substitute" is requested. the housing authority
will consider bids for the referenced product only. The term "or approved equal" is defined as
meaning any other make which, in the sole opinion of HND, is of such character, quality and
performance equivalence as to meet the standard of quality of products specified for which it is to
be used equally as well as that specified. Tl:1e bidder quoting on a product other than the
referenced product shall furnish complete identification on the bid form of the product he is
offering by trade name, brand and/or model number. The bidder shall also furnish with hislher bid,
descriptive literature and data with respect to the substitute product he proposes to furnish.
Bidders offering a substitute shall also indicate any known specification deviations from the
referenced product.
2. Delivery:
All materi,als and products shall be delivered F.O.B. Destination with any delivered, duty paid
(DDP). The contractor agrees to bear the risk of loss, injury or destruction of products ordered
which occur prior to receipt by the Owner and acceptance by HND. Such loss, injury or destruction
shall not release contractor from any contractual obligations. All products must be delivered within
the time period specified on the order. Time is of the essence and, in addition to any other
remedies contained in this invitation for bid, the order is subject to termination for failure to deliver
as specified. In the event of termination, HND shall have the right to purchase in the open market
a corresponding quantity of the products and the contractor shall be responsible for any excess
cost to the Owner and HND.
3. Inspection and Rejection:
No product received by, HND shall be deemed accepted until HND has had a reasonable
opportunity to inspect said product. Any product, which is discovered to be defective or fails to
conform to the specifications may be rejected upon initial inspection or at any later time if the
defects contained in the products or the ,noncompliance with the specifications were not
reasonably ascertainable upon the initial inspection. The decision of. HND shall be final. It shall
thereupon become the duty of the contractor to remove rejected products from the premises
without expense to HND within fifteen (15) days notification. Rejected products left longer than
fifteen (15) days will be regarded as abandoned, and HND shall have the right to dispose of them
as its own property and shall retain that portion'of the proceeds of any sale which represents HND
costs and expenses in regard to the storage and sale of the products. Upon notice of rejection, the
contractor shall immediately replace all. such rejected products with others conforming to the
specifications and which are not defective. If the contractor fails, neglects or refuses to do so,
HND shall then have the right to purchase in the open market a corresponding quantity of such
products, and deduct from any monies due or that may thereafter become due to the contractor,
the difference between the price stated in the contract or purchase order and the actual cost
thereof to HND.
Page 1 of3
HND Form 403
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
SUPPLEMENTAL CONDITIONS
Project #:
CDBG-03030
4. HNDApproval of Subcontracts.
A. Any proposed subcontracts shall be disclosed in Contractor's bid submission. Contractor shall
furnish such written information as HND may require concerning the proposed subcontractor,
together with the proposed subcontractor's Non-Collusion Affidavit. in the form prescribed by
HND within 5 days of HND request for such information. Any objection shall be expressed in
writing by HND within ten (10) days after receipt.
B. HND may, without claim for extra cost by the contractor, disapprove any subcontractor for
cause on the basis of its own determination or because' of the fact that the proposed
subcontractor is listed as ineligible to receive awards of contracts from the United States on a
current HND list or list furnished by HUD.
C. Nothing contained in the contract shall create any contractual relation between any
subcontractor and HND.
5. Withholding for damages. HND may withhold, or cause to be withheld, from any monies payable
for acceptable work performed by the contractor or subcontractor, damages caused by the
contractor or subcontractor, or other claims against the contractor or subcontract such sums as
may be determined to be nece'ssary to satisfy any liabilities of such contractor or subcontractor.
6. Hold Harmless. It is understood and agreed that contractor shall be deemed and considered an
independent contractor in respect to the work. covered by this Agreement, and shall assume all
risk and responsibility for casualties of every description in connection with the work which can be
attributed either directly or indirectly to the contractor. Contractor itself, its successors, assigns,
heir, executors and administrators, agrees to indemnify, defend and save harmless the Owner and
HND, all its officers and subordinates:
A. from all suits and actions of every nature brought against HND or any of them for or on
account of any damage or loss sustained by HND, and does agree to pay any and all such
damages including costs of litigation and counsel fees whether defended by HND or
contractor; and '
/,
B. if the contractor is required to enter premises owned, leased, occupied by or under the control
of the Owner during the performance of ,this contract, the contractor shall indemnify and hold
harmless both the Owner and HND, its officers and employees, from any loss, cost, damage
expense or liability by reason of property damage, or personal injury, including death, of
whatsoever nature or kind arising out of as a result of such performance, whether arising out of
actions of the contractor or any of its employees, subcontractor, and lower tier subcontractors.
It is not the intention of this contract or anything herein provided to confer a third party
beneficiary right or action upon any person whatsoever and nothing herein before or herein
after set forth shall be construed so as to confer upon any person other than the Owner and
HND a right of action either under this contractor or in any manner whatsoever.
Page 2 of 3
HNDForm 403
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
SUPPLEMENTAL CONDITIONS
Project #:
CDBG-03030
7. Taxes, Industrial Laws and Benefits. In all matters relating to this contract, the contractor shall
be acting as an independent contractor. Neither the contractor nor any of the persons furnishing
materials or performing work or services which are required by this contract are employees of
HND within the meaning of or the application of any federal, or state unemployment insurance
law, or other social security, or any workmen's compensation, industrial accident law, or other
industrial or labor laws. At its own expense, the contractor shall comply with such laws and
assume all obligations imposed by anyone or more of such laws with respect to this contract. In
addition, contractor shall be liable for the payment of all federal, state and local taxes, and any
special assessments.
8. No Waiver of Conditions. Failure of HND to insist on strict performance shall not ,constitute a
waiver of any of the provisions of this contract or waiver of any default of the contractor.
9. Severability. If any provision of this contract, or any application thereof to any person or
circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this
, contract which can be given effect without the invalid provisions or application, and to this end the
provisions ot this contract are severable.
10. Architect. Architectural and Engineering services for this project will be provided by the Augusta-
Richmond County Public Works Department.
11. Special ,Hazards. The Contractor and his Subcontractor's Liability and Property Damage
Insurance shall provide adequate protection against the following special hazards:
A. work within the right-ot-ways ot the Augusta-Richmond County Road System.
B. work within the easements granted by property owners in connection with the construction of
, the project. '
C. work in close proximity to existing water lines, telephone lines, gas lines, other utilities and
private structures contiguous to the job site.
Page 3 of 3
, '
ADDITIONAL SUPPLEMENTAL CONDITIONS
Project #:
CDBG-03030
HND Form 404
_ (Rev, 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
1. Employment, Training, and Contracting Opportunities for Low-Income Persons, Section 3
of the Housing and Urban Development Act of 1968.
The work to be performed under this contract is subject to the requirements of Section 3 of the
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) (Section 3). The purpose of
Section 3 is to ensure that employment and other economic opportunities generated by HUD,;,
assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low-
and very low-income persons, particularly persons who are recipients of HUD assistance for
housing.
2. Employment Opportunities Generated By Section 3 Covered Assistance.
All employment opportunities generated by the expenditure of Section 3 covered public and Indian
housing assistance (Le., operating assistance, development assistance and modernization
assistance, as described in Section 135.3(a)(1 )). With respect to Section 3 covered housing and
community development assistance, this term means all employment opportunities arising in
connection with Section 3 covered projects (as described in Section 135.3(a)(2)), including
management and administrative jobs connected with the Section 3 covered project. Management
and administrative jobs include architectural, engineering or related professional services required
to prepare plans, drawings, specifications, or work write-ups; and jobs directly related to
administrative support of these activities, e.g., construction manager, relocation specialist, payroll
clerk, etc.
3. Definitions: -"
A. Section 3 resident means:
(1) A public housing resident; or
(2) An individual who reside's in the metropolitan area or non-metropolitan county in which the
Section 3 covered assistance is expended, and who is:
(a) A low-income person, as this term is defined in Section 3(b)(2) of the 1937 Act (42
u.s.c. 1437a(b)(2)). Section 3(b)(2) of the 1937 Act defines this term to mean
families (including single persons) whose incomes do not exceed 80% of the median
income for the area, as determined by the Secretary, with adjustments for smaller
and larger families, except that the Secretary may establish income ceilings higher or
lower than 80% of the median for the area on the basis of the Secretary's findings
that such variations are necessary because of prevailing levels of construction costs
or unusually high or low-income families; or
(b) A very low-income person, as this term is defined in Section 3(b )(2) of the 1937 Act
(42 U.S.C. 1437a(b)(2)); Section 3(b)(2) of the 1937 Act (42 U:S.C. 1437a(b)(2))
defines this term to mean families (including single persons) whose incomes do not
exceed 50% of the median family income for the area, as determined by the
Secretary with adjustments for smaller- and larger families, except that the Secretary
may establish income ceilings higher or lower than 50% of the median for the area on
the basis of the Secretary's findings that such variations are necessary because of
unusually high or low family incomes.
Page 1 of 5
HND Form 404
(Rev.06fQ3)
CONTRACT DOCUMENTS -- CONSTRUCTION
ADDITIONAL SUPPLEMENTAL CONDITIONS
Project #:
CDBG-03030
(c) A person seeking the training and employment preference provided by Section 3
bears the responsibility of providing evidence, if requested, that he/she is eligible for
the preference. Section 8 assistance means assistance provided under Section 8 of
the 1937 Act (42 U.S.C. 1437f) pursuant to 24 CFR part 882, subpart G.
B. Section 3 business concern means a business concern, as defined in this Section:
(1) That is 51 percent or more owned by Section 3 residents; or
(2) Whose permanent, full-time employees include persons, at least 30 percent of whom are
currently Section 3 residents, or within three years of the date of first employment with the
business concern were Section 3 residents; or
(3) That provides evidence of a commitment to subcontract in excess of 25 percent of the
dollar award of all subcontracts to be awarded to business concerns that meet the
qualifications set forth in paragraphs (1) or (2) in this definition of "Section 3 business
concern." '
C. Subcontractor means any entity (other than a person who is an employee of the contractor)
which has a contract with a contractor to undertake a portion of the contractor's obligation for
the performance of work generated by the expenditure of Section 3 covered assistance, or
arising in connection with a Section 3 covered project.
D. Section 3 clause means the contract provisions set forth in Sec. 135.38.
E. Section 3 covered activity means any activity that is funded by Section 3 covered assistance
public and Indian housing assistance.
)
4. Responsibilities of the Augusta-Richmond County. Housing & Neighborhood Development
Department (HND).
HND has the responsibility to comply with Section 3 in its own operations, and ensure compliance
in the operations of its contractors and subcontractors. This responsibility includes but may not be
necessarily limited to:' , '
A. Implementing procedures designed to ,notify Section 3 residents about training and
employment opportunities generated by Section 3 covered assistance and Section 3 business
concerns about contracting opportunities generated by Section 3 covered assistance;
B. Notifying potential contractors for Section 3 covered projects of the requirements of this
part, and incorporating the Section 3 clause in all solicitations and contracts; ,
C. Facilitating the training and employment of Section 3 residents and the award of contracts
to Section 3 business concerns by undertal<ing activities to reach the goals set forth in Section
135.30;
D. Assisting in obtaining the compliance of contractors and subcontractors with the requirements
of this part, and refraining from entering into any contract with any contractor where the
recipient has notice or knowledge that the contractor has been found in violation of the
regulations in 24 CFR part 135; and
Page 2 of5
r\
HND Form 404
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
ADDITIONAL SUPPLEMENTAL CONDITIONS
Project #:
CDBG-03030
E. Documenting actions taken to comply with the requirements of this part, the results of actions
taken and impediments, if any.
5. Employment and Contracting with Residents, Resident-owned Businesses, Small and
Other Businesses.
A. General. HND strongly supports a policy of contracting and providing employment
opportunities with residents and, resident-owned businesses. Accordingly, agencies are
strongly encouraged to contract, with residents and resident-owned businesses whenever
possible.
B. Section 3 of the HUD Act of 1968.
(1) This law requires that HND make an effort to ensure that individuals or firms located in or
owned in substantial part by persons residing in the area of a project are used when
possible. The regulations describing this program are in 24 CFR Part 135 and the contract
form includes a clause implementing this requirement.
(2) Employment and training opportunities for pre-apprentices, apprentices and other training
programs for residents will assist HND in meeting resident employment, training, and local
contracting objectives under Section 3. Further guidance is provided in Federal Register
Notice,' dated October 6, 1992 and HUD Notice 92-01-SL (See Appendix 32).
(3) HUD Handbook 8023.1, Implementing Section 3 of the Housing and Urban Development
Act of 1966 provides guidance regarding compliance with Section 3. Some of the important
provisions include but are not limited to the following:
(a) Solicitations, regardless of the method, must advise prospective contractors of the
Section 3 requirements.
(b) The Section 3 contract clause must be included in all covered contracts.
(c) HND and its contractors must make a good faith effort to provide, to the greatest
extent feasible, training and employment to lower income residents of the unit of local
government in connection with the work on an assisted project. In filling vacancies,
HND and its contractors may prominently post notices at the project site and in the
HND Office and' may contact resident councils and resident' management
corporations, in addition to their other recruitment efforts, to meet the requirements of
Section 3. '
,(d) HND and its contractors must make a good faith effort to award contracts, to the
greatest extent feasible, to businesses located in or owned in substantial part by
persons residing in Augusta-Richmond County. In meeting this requirement, HND
should consider use of the alternative procurement procedures at 24 CFR Part 963.
See paragraph 6 below.
(e) Contractors must make a good faith effort to award .subcontracts to businesses
located in Augusta-Richmond County or substantially owned by persons residing in
Augusta-Richmond County. '
Page 3 of 5
HND Form 404
(Rev, 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
ADDITIONAL SUPPLEMENTAL CONDITIONS
Project #:
CDBG-03030
6. Resident';Owned Business.
A. HUD issued a final rule at 24 CFR Part 963 which allows HND to use an alternative
procurement process when contracting with businesses owned in substantial part by residents
(resident-owned businesses) for public housing services, supplies, or construction. As stated
in paragraph' 5, HUD strongly encourages HND to contract with resident businesses to the
maximum extent feasible. This has been a proven strategy for moving low-income persons out
of poverty and dependency. The alternative procurement process is based on the established
procurement procedures and requirements set forth in HUD regulations at 24 CFR 85.36, but
limits solicitation to resident-owned businesses. The purpose of this rule is to enhance the
economic opportunities available to residents by facilitating the award of HND contracts to
resident-owned businesses that are capable of performing successfully under a proposed HND
contract at a reasonable price.
B. The alternative procurement process under 24 CFR 963 is as follows:
(1) HND prepares an independent cost estimate for the procurement.
(2) HND selects the appropriate method of procurement (small purchase, sealed bidding,
competitive proposals, or noncompetitive proposals).
(3) 'HND solicits a quotation or offer from one or more resident-owned business.
(4) HND receives bids from one or more resident-owned business and ensures that:
(a) the bidders have submitted the required certification regarding previous contracts
received under the alternative procurement process; and '
(b) the total amount of such previous contracts is less than $500,000.
(c) HND performs a cost or price analysis of the bids received and determines the price
that would normally be paid for comparable supplies, services, or construction in the
project area.
(5) HND awards the contract to the most advantageous bidder, consistent with the evaluation
factors stated in the solicitation, provided that the price does not exceed the independent
cost estimate and the price that would normally be paid for comparable supplies, services,
or construction in the project area.
(6) HND documents the procurement file and complies with all other applicable procurement
requirements of 24 CFR 85.36 or 24 CFR 905.
7. Requirements of Bidders. All contractors must comply with Section 3. A bidder claiming a
Section 3 preference must qualify as a Section 3 Business Concern or a Resident-owned
Business. The bidder must submit the Section 3 Business Concern Certification with the bid to
qualify. Additionally, each contractor must, to the greatest extent feasible, hire a Section 3 eligible
resident when a new hire possibility occurs.
Page 4 of 5
HND Form 404 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) ADDITIONAL SUPPLEMENTAL CONDITIONS CDBG-03030
8. Eligibility for preference. A ,Section 3 resident seeking the preference In training and
employment provided by this part shall certify, or submit evidence to the recipient contractor or
subcontractor, if requested, that the person is a Section 3 resident, as defined in Section 135.5.
(An example of evidence of eligibility for the preference is evidence of receipt of public assistance,
or evidence of participation in a public assistance program.)
9. Eligibility for employment. Nothing in this part shall be construed to require the employment of a
Section 3 resident who does not meet the qualifications of the position to be filled.
10. Preference in the award of Section 3 covered contracts. Preference in the award of Section 3
covered contracts that are awarded under a sealed bid process may be provided as follows:
A. Bids shall be solicited from all businesses' (Section 3 business concerns, and non-Section 3
business concerns). An award shall be made to the qualified Section 3 business concern with
the highest priority ranking and with the lowest responsive bid if that bid:
(1 ) Is within the maximum total contract price established in the contracting party's budget for
the specific project for which bids are being taken: and
(2) Is not more than "X" higher than the total bid price of the lowest responsive bid from any
responsible bidder. "X" is determined as follows:
x = Lesser of:
When the lowest responsive bid is less than $100,000. 10% of that bid or $9,000.
When the lowest responsive bid is:
At least $100,000, but less than $200,000 9% of that bid, or $16,000
At least $200,000, but less than $300,000 ' 8% of that bid, or $21 ,000
At least $300,000, but less than $400,000 7% of that bid, or $24,000
At least $400,000, but less that $500,000 6% of that bid, or $25,000
At least $500,000, but less than $1 million 5% of that bid, or $40,000
At least $1 million, but less than $2 million 4% of that bid, or $60,000
At least $2 million, but less than $4 million 3% of that bid, or $80,000
At least $4 million"but less than $7 million 2% of that bid, or $105,000
$7 million or more 1 1/2% of the lowest responsive bid with no dollar limit
B. If no responsive bid by a Section 3 business concern meets the requirements of paragraph A.
(1) of this Section, the contract shall be awarded to a responsible bidder with the lowest
responsive bid.
Page 5 of 5
HND Form 405
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
SPECIAL CONDITIONS
Project #:
CDBG-03030
SCOPE:' This project is located at 1725 Marvin Griffin Rd. approximately 266 feet West of
Pippin Road RW. It consists of clearing and grubbing of 4.8 acres within a 7.09 acre tract and
the disposal of the clearing and grubbing components. Areas to be cleared have been
delineated as have areas to remain uncleared.
1. A 20 foot minimum buffer shall be left uncleared along all sides of this track except that side
adjoining Marvin Griffin Rd. RW on the South side of the track.
2. 'A one. quarter mile walking track shall be cleared a minimum width of 30 feet as indicated on
the drawings. The contractor shall coordinate the layout of the quarter mile walking track
with Ron Houck (821-2870) of the Augusta Recreation Department.
3. The cleared areas shall be free of all limbs, root, stumps, etc. and the areas smoothed to a
surface approximately the same elevation as existed prior to the clearing.
4. All debris from this work shall be disposed of in a proper manner at a location approved by
the Engineer.
5. Install 48 ft. of 18" RCP as a temporary drive and construction access at a location on
Marvin Griffin Road. The temporary entrance shall be installed in the close viCinity of the
entrance shown on the project drawings.
6. The contractor shall install a standard Construction Exit over the temporary driveway.
7. Erosion control measures shall be installed prior to any grubbing and promptly after any
clearing.
8. The contractor shall take whatever measures needed to assure no silt leaves the project.
9. Standard GA DOT signing and specifications (Current Edition) will govern this work.
10. No Temporary I Permanent Grass will be required as a part of this contract.
11. The contractor shall assure that the proposed baseball diamond area is cleared large
enough to accommodate the 200 feet foul lines plus the extra dimensions shown on the
contract drawings. This shall be coordinated with the Engineer.
12. Selected trees identified and marked by the Engineer shall remain as is and shall be
protected by the contractor.
13. Any trees broken or damaged during the work shall be removed completely to leave a neat
appearance.
14. The allotted contract time for completion of this work is 30 calendar days.
, Page 1 of 1
" '
.
HND Fonn 409
(Rev. 11/03}
CONTRACT DOCUMENTS -- CONSTRUCTION
NOTICE TO PROCEED '
Project #:
CDBG.Q2033
(-.'
..,
TO:
Columbia Sheet Metal, Incorporated
3875 Oak Drive
Martinez, GA 30907
,PROJECT:
McDuffie Woods Park HV AC
Old McDuffie Road'
Augusta, GA 30906
PROJECT #:
CDBG-02033
1. You are hereby notified to commence work on the Project shown above, in accordance with
the Construction ~ontract dated October 28, 2003.
2. You'may begin work on this Project on November 24, 2003, but no later than ten (10)
calendar days from that'date. Your company will complete all work not later than Forty-five,
(45) consecutive calendar days from the Start Date.' The Scheduled Completion Date for this
project is therefore January 9, 2004.
3. Liquidated damages, as outlined in the contract, will begin on the day after the Scheduled
(-'\, Completion Date, and will continue daily until the project is actually completed. Authorized
". '. _./ delays that may add additional time to the, Scheduled Completion Date will be determined by
HND.
CONTRACTOR ACCEPTANCE OF NOTICE
Receipt of the above Notice to Proceed is hereby acknowledged by Columbia Sheet Metal,
::oV~/?~
Title: ~~-
Date:
/ /-?LJ-- C23
,
\..,
Page 1 of 1
HND Form 401
(Rev, 06/03)
CONTRACT DOCUMENTS .... CONSTRUCTION
FORM OF CONTRACT
Project #:
COBG #02033
{/" ~'1
~ .;
t'
. ,THIS AGREEMENT made this Twentv-Eiahth day of October in the year 2003, by and between
Columbia Sheet Metal. Incorporated, a Corporation, Partnership or Sole Proprietorship existing
under the laws of the State of Georgia, hereinafter called the "Contractor," and Auausta-Richmond
County, herein called the "Owner."
WITNESSETH, that the Contractor and the Owner for the consideration stated herein, mutually agree
as follows:
ARTICLE I
Statement of Work. The Contractor shall furnish' all labor, material, equipment, and services and
perform and complete all work required for the construction of Project No. 02033, in strict
accordance with "Invitation for Bids on Furnishing and Installing McDuffie Woods Park Heating,
Venting, & Air Conditioning System, IFB# HND~03-IFB-011, dated August 25, 2003", and the
drawings referred to herein, all as prepared by Cheatham. Fletcher. Scott. and Sears Architects,
P.C., which said Spedfications and Drawings are incorporated herein by reference and made a part
hereof.
ARTICLE II
(- j
.1"-_ J:
Contract Price. The Augusta-Richmond County Housing & Neighborhood Development Department,
on behalf of the Owner, shall pay the Contractor for the performance of the Contract, in current funds,
subject to additions and deductions as provided In the specifications for completed work meeting the
requirements of the Contract Documents, the sum of:
Thlrtv Thousand. Two Hundred and Twenty-Three Dollars l$ 30.223.00~
ARTICLE III
Contractor agrees that time is of the essence in the completion of the work in the time required by this
contract and hereby waives any notice of putting in default for failure to complete on time.
ARTICL.E IV
Contract Documents. The contract shall consist of the following component parts:
(a) This Instrument
(b) General Conditions
(c) Special/supplemental Conditions
( d) Technical Specifications
l\ ) (e) Drawings
Page 10f 2
HND Form 401
(Rev, 06/03)
(-- \
CONTRACT DOCUMENTS -- CONSTRUCTION
FORM OF CONTRACT
Project #:
CDBG #02033
This instrument, together with the other documents enumerated in this ARTICLE IV, which said other
documents are as fully a part of the Contract as if hereto attached or herein repeated, form the
Contract. In the event that any provision of any other component part of this Contract conflicts with
any provision of any other component p~rt, the provision of the component part first enumerated in
the ARTICLE IV shall govern, except as otherwise specially stated. The various provisions in the
Addendum shall be construed in the order of the preference of the component part of the Contract
which each modifies.
IN WITNESS WHEREOF, the parties hereto have caused this Instrument tobe executed in four (4)
original counterparts as of the day and year first above written.
AUGUSTA"RICHMONO COUNTY \ ~
(Owner) ctlSjgnature) .
BOB YOUNG
, (Print Name)
MAYOR
(Title)
r'
\ )
'- ...
COLUMBIA SHEET METAL, INCORPORATED
( Contractor)
fl~Jl/l/~
(Signatt,Jre)
DAVID NICKEL
(Print Name),
ESTIMATOR
(Title)
~~-
Sworn to and subscribed before me this
year~
. Sf.~
Notary Public,
~c'tl!lIfY PubUe mchmond County. Georgia
My Comm~on ExPires Jan. 4, 2005
/~cf1c-
.
day of IYbvEJ1l,~~
. .
in the
(SEAL)
Page 2 of 2
//'~ "
\,
(-')
'-." -'
t
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
- t I - I: : _ __ - -I - , -~ CqNDUCT OF WORK
1. Definitions.
A. "Architect" means the person or other entity engaged by the Owner to perform architectural, engineering, design,
and other services related to the work as provided for in the contract: When HND uses an engineer to act in this
capacity, the terms "architect" and "engineer" shall be synonymous. The Architect shall serve as a technical
representative of HND and the Owner. The Architect's authority is as set forth elsewhere in this contract.
B. "Contract" means the contract entered into between the Owner and the Contractor. It includes the forms of Bid,
the Bid Bond, the Perfohnance and Payment Bond or Bonds or other assurance of completion, the Certifications,
Representations, and Other Statements of Bidders, these General Conditions of the Construction Contract, the
applicable wage rate determinations from either the U.S. Department of Labor or HUD, and any Supplemental
and Special conditions included in the contract, the Notice to Proceed, the drawings and specifications, and the
work write up. It includes all formal changes to any of those documents by addendum, change order, or other
modification The Contract, including all. referenced documents, constitutes the entire agreement between the
parties. No agent, representative, employee or officer of either HND, the Owner, or the Contractor has authority to
make any statement, agreement or representation, oral or written, in connection with the Contract, which in any
way can be deemed to modify, add to or detract from, or otherwise change or alter its terms and conditions. No
negotiations between the parties, nor any custom or usage, shall be permitted to modify or contradict any of the
terms and conditions of the Contract. No modifications, alterations, changes, or waiver to the Contract or any of
its terms shall be valid or binding unless accomplished by a written amendment signed by all parties. All such
amendments will be made using the appropriate HND form.
C. "Contractor" means the person or other entity entering into the contract with the Owner to perform all of the work
required under the contract.
D. aDrawings. means the drawings enumerated in the schedule of drawings contained in the Specifications and as
described in the contract clause entitled "Specifications and Drawings for Construction" herein.
E. "HND" means the Augusta-Richmond County Housing and Neighborhood Development Department. HND
provides financial assistance to an eligible Owner, which includes assistance in financing the work to be
performed under this contract. As defined elsewhere in these General Conditions' or the contract documents, the
determination of HND is required t<?~uthorize changes in the work or for release of funds for payment to the
Contractor. Notwithstanding HND's tole, nothing in this contract shall be construed to create any contractual
relationship between the Contractor and HND.
F. aHND Rehabilitation Inspector" means the person or persons delegated the authority by HND to execute,
administer, and/or terminate this contract. The term includes any successor HND Rehabilitation Inspector. HND
shall be deemed an authorized agent of the Owner in all dealings with the Contractor.
G. "Owner" is the person or organization identified as such in the Construction Contract. The term owner means the
Owner or his authorized, representative.
H. "Project" means the entire project, whether construction or rehabilitation, the work for which is provided for in
whole or in part under this contract. '
I. "Specifications" means the written description of the technical requirements for construction and includes the
criteria and tests for detennining whether the requirements are met.
J. "Testing Laboratory" An independent entity engaged to perform specific inspections or tests of the work, either
at the project site or elsewhere; and to report and, if required, interpret results of those inspections or tests.
2.
Contractor's Responsibility for Work.
A. The Contractor shall furnish all .necessary labor, materials, tools, equipment, and transportation necessary
for performance of the work. The Contractor shall also furnish all necessary water, heat, light, and power not
made available to the Contractor by the Owner pursuant to the clause entitled "Availability & Use of Utility
Services."
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Page 1 of 31
HND Fonn 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
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B. The Contractor shall perform on the site, and with its own organization, work equivalent to at least 12 percent
of the total amount of work to be performed under the order. This percentage may be reduced by a
supplemental agreement to this order if, during performance of the work, the Contractor requests a reduction
and HND determines that the reduction would be to the advantage of HND and'the Owner.
C. At all times during performance of this contract and until the work is completed and accepted, the Contractor
shall directly superintend the work 'or assign and have on the work site a competent superintendent who is
satisfactory to HND and has authority to act for the Contractor.
D. The Contractor shall be responsible for all damages to persons or property that occur as a result of his fault
or negligence, and shall take proper safety and health precautions to, protect the work, the workers, the
public, and the property of others. The Contractor shall hold and save the Owner and HND, its officers, and
agents, free and harmless from liability of any nature occasioned by the Contractor's performance. The
Contractor shall also be responsible for all materials delivered and work performed until completion and
acceptance of the entire work, except for any completed unit of work which may have been accepted under
the contract. -
E. The Contractor shall layout the work from base lines and benchmarks indicated on the drawings and is
responsible for all lines, levels, and measurements of all work executed under the contract. The Contractor
shall verify the figures before laying out the work and will be held responsible for any error resulting from its
failure to do so.
F. The Contractor shall confine all operations (including storage of materials) on the Owner's premises to areas
authorized or approved by HND.
G. The Contractor shall at all times keep the work area, including storage areas, free from accumulations of
waste materials. After completing the work and before final inspection, the Contractor shall:
(1.) remove from the premises all scaffolding, equipment, tools, and materials (including rejected
materials) that are not the property of the Owner and all rubbish caused by its work.;
(2.) leave the work area in a clean, neat, and order1y condition satisfactory to HND;
(3.) perform all specified tests; and,
(4.) deliver the installation in complete and operating condition.
H. The Contractor's r~sponsibility will terminate when all work has been completed, the final inspection made,
and the work accepted by the HND and the Owner. The Contractor will then be released from further
obligation except as required by the warranties specified elsewhere in the contract.
3. Architect's Duties, Responsibilities, and Authority.
A. The Architect for this contract, if any, shall be designated in writing by HND and the Owner.
B. The Architect shall serve as HND's technical representative, with respect to architectural, engineering, and
design matters related to the work performed under the contract. The Architect, when requested by HND,
may provide direction on contract performance. Such direction shall be within the scope of the contract and
may not be of a nature which:
(1.) Institutes ad~itionai work outside the scope of the contract;
'(2.) Constitutes a change as defined in the "Changes. clause of this contract;
(3.) Causes an increase or decrease, in the cost of the contract;
(4.) Alters the Construction Progress Schedule; or
(5.) Changes any of the other express terms or conditions of the contract.
Page 2 of 31
HND Form 402
(Rev. 06103)
CONTRACT DOCUMENTS '.. CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
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C. The Architect's duties and responsibilities may include but shall not be limited to:
(1.) Making periodic visits to the work site, and on the basis of on-site inspections, issuing written reports
to HND, which shall include all observed deficiencies. The Architect shall file a copy of the report with
the Contractor's designated representative atthe site;
(2.) Making modifications in drawings and technical specifications and assisting t'lND in the preparation of
change orders and other contract modifications for issuance by HND;
(3.) Reviewing and making recommendations with respect to:
(4.) the Contractor's construction progress schedules;
(5.) the Contractor's shop and detailed drawings;
(6.) the machine!)', mechanical and other equipment and materials or other articles proposed for use by
the Contractor.
(7.) Assisting in inspections, signing Certificates of Completion, and making recommendations regarding
acceptance of work completed under the contract.
4. Other Contracts:
HND or the Owner may undertake or award other contracts for additional work at or near the site of the work under
this contract. The Contractor shall fully cooperate with the other contractors and shall, carefully adapt scheduling
and perf o lTT1i ng the work under this contract to accommodate the additional work, heeding any direction that may
be provided by HND. The Contractor shall not commit or pennit any act that will interfere with the perfonnance of
work by any other contractor.
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Page 3 of 31
HND Form 402
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
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1. Pre-construction Conference and Notice to Proceed.
A. After the Notice of Award has been issued, but prior to the contract execution, the Contractor shall attend a
pre-construction conference with representatives of the Owner, HND, its Architect, and other interested
, parties convened by the Owner. The conference will serve to acquaint the participants with the general plan
of the construction operation, and all other requirements of the contract. The Owner will provide all parties
with the date, time, and place of the conference.
B. 'The Contractor shall begin work upon receipt of a written Notice to Proceed from HND. The Contractor shall
not begin work prior to receiving such notice.
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2. Construction Progress Schedule.
A. The Contractor shall, within three (3) business days after the pre-construction conference or another
period of time determined by HND, prepare and submit ,to HND three copies of a practicable schedule
showing the' order in which the Contractor proposes to perform the work, and the dates on which the
Contractor contemplates starting and completing the several salient features of the work (including acquiring
labor, materials, and equipment). The schedule shall be in the form of a progress chart of suitable scale to
indicate appropriately the percentage of work scheduled for completion by any given date during the period.
If the Contractor fails to submit a schedule within the time prescribed, HND may withhold approval of
,progress payments or take other remedies under the contract until the Contractor submits the required
schedule.
B. The Contractor shall enter the actual progress on the chart as required by HND, and immediately deliver
three copies of the annotated schedule te> HND. If HND detennines, upon the basis of inspection conducted
pursuant to the clause entitled "Inspection and Acceptance of Construction", herein that the Contractor is not
meeting the approved schedule, the Contractor shall take steps necessary to improve its progress, including
those that may be required by HND, without additional cost to HND or the Owner. In this circumstance, HND
may require the Contractor to increase the number of shifts, overtime operations, days of work., and/or the
amount of construction plant, and to submit for approval any supplementary schedule or schedules in chart
fonn as HND deems necessary to demonstrate how the approved rate of progress will be regained.
C. Failure of the Contractor to comply with the requirements of HND under this clause shall be grounds for a
determination by HND that the Contractor is not prosecuting the work with sufficient diligence to ensure
completion within the time specified in the Contract. Upon making this determination, HND may terminate the
Contractor's right to proceed with the work., or clOy separable part of it, in accordance with the "Default"
clause of this contract.
3.
Site Investigation and Conditions Affecting the Work.
A. The Contractor acknowledges that he has taken steps reasonably necessary to ascertain the nature and
location of the work, and that he has investigafed and satisfied himself as to the general and local conditions
which can affect the work or its cost, including but not limited to:
(1.) conditions bearing upon t~ansportation, disposal, handling, and storage of materials;
(2.) the availability of labor, water, electric power, and roads;
(3.) uncertainties of weather, river stages, tides, or similar physical conditions at the site;
(4.) the conformation and conditions of the ground; and
(5.) the character of equipment and facilities needed preliminary to and during work performance.
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Page 4 of 31
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
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B. The Contractor acknowledges that.he is satisfied as to the character, quality, and quantity of surface and
sub-surface materials or obstacles to be encountered insofar as this information is reasonably ascertainable
from an inspection of the site, including all exploratory work done by HND, as well as from any drawings and
specifications made a part of this contract. Any failure of the Contractor to take the actions described and
acknowledged in this paragraph will not relieve the Contractor from responsibility for estimating properly the
difficulty and cost of successfully performing the work, or from proceeding to successfully perform the work
without additional expense to HND or the Owner.
C. HND assumes no responsibility for any conclusions or interpretations made by the Contractor based on the
information made available by HND. Nor does HND assume responsibility for any understanding reached or
representation made concerning conditions that can affect the work by any of its officers or agents before the
execution of this contract, unless that understanding or representation is expressly stated in this contract.
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4. Differing Site Conditions.
A. The Contractor shall, within two (2) business days of discovery, and before the conditions are disturbed, give
a written notice to HND and the Architect of:
(1.) subsurface or latent physical conditions at the site which differ from those indicated in this contract; or
(2.) unknown physical conditions at the site, of an unusual nature, which differ materially from those
ordinarily encountered and generally recognized as inhering in work of the character provided for in
the contract.
B. HND and the Architect shall investigate the site conditions promptly after receiving the notice. Work shall not
proceed at the affected site, except at the Contractor's risk, until HND has provided written instructions to the
Contractor. If the conditions materially differ and cause an increase or decrease in the Contractor's cost or
the time required for performing any part of the work under this contract, whether or not changed as a result
of the conditions, HND will make an equitable adjustment in the contract price, the delivery schedule, or both
under this clause and the contract modified in writing accordingly. .
C. No request by the Contractor for an equitable adjustment to the contract under this clause shall be allowed,
unless the Contractor has given the written notice required; provided, that the time prescribed above for
giving written notice may be extended by HND.
D. No request by the Contractor for an equitable adjustment to the contract for differing site conditions shall be
allowed if made after final payment under this contract.
5. Specifications and Drawings for Construction.
B.
The Contractor shall keep on the work site a copy of the drawings and specifications and at all times give
access to HND and the Architect. Anything mentioned in the specifications and not shown on the drawings,
or shown on the drawings and not mentioned in the specifications, shall be of Uke effect as if shown or
mentioned in both. In case of difference between drawings and specifications, the specifications shall
govern. In case of discrepancy in the figures, in the drawings, or in the specifications, the matter shall be
promptly submitted to the Architect, who will make a determination in writing. Any adjustment by the
Contractor without such a determination .shall be at its own risk and. expense. The Architect shall furnish from
time to time such detailed drawings and other information as considered necessa-ry, unless otherwise
provided.
Where in the specifications or drawings the words "directed", "required", "ordered", "designated",
"prescribed", or like words are used, it shaW be understood that the "direction", "requirement", "order",
"designation", or "prescription", of HND is intended. Similarly the words "approved," "acceptable,"
"satisfactory," or like words shall mean "approved by," or "acceptable to," or "satisfactory to" HND, unless
otherwise expressly stated.
A.
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HND Form 402
(Rev. 06/03)
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
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C. Where "as shown,. "as indicated,. "as detailed," or words of similar import are used, it is understood that the
reference is made to the drawings accompanying this contract unless stated otherwise. The word "provided"
as used herein shall be understood to mean, "provide complete in place", that is ''furnished and installed."
D. .Shop drawings. means drawings, submitted to the Architect by the Contractor, subcontractor, or any lower
tier subcontractor, showing in detail:
(1.) the proposed fabrication and assembly of structural elements; and
(2.) the installation O.e., form, fit, and attachment details) of materials of equipment. It includes drawings,
diagrams, layouts, schematics, descriptive literature, illustrations, schedules, performance and test
data, and similar materials furnished by the Contractor to explain in detail specific portions of the work
required by the contract. HND may duplicate, use, and disclose in any manner and for any purpose
shop drawings delivered under this contract.
E. The Contractor shall submit to the Architect for approval one reproducible and one opaque copy (unless
otherwise noted) and to HND for record one opaque copy of all shop drawings as called for under the various
headings of these specifications. Deliver the submittal by such method as to assure receipt within two days
of sending. Notify the architect via facsimile on the day the submittal is sent. .
F. If this contract requires shop drawings, the ContraCtor shall coordinate all such drawings, and review them
for accuracy, completeness, and compliance with other contract requirements and shall indicate its approval
thereon as evidence of such coordination and review. Shop drawings submitted to the Architect without
evidence of the Contractor's approval may be returned for re-submission. HND and the Architect will indicate
an approval or disapproval of the shop drawings and if not approved as submitted shall indicate the reasons
therefor. Any work done before such approval shall be at the Contractor's risk. ApprovaLby HND and the
Architect shall not relieve the Contractor from responsibility for any errors or omissions in such drawings, nor
from responsibility for complying with the requirements of this contract, except with respect to variations
described and approved in accordance with paragraph 9G below.
G. If shop drawings show variations from the contract requirements, the Contractor shall describe such
variations in writing, separate from the drawings, at the time of submission. If the Architect approves any
such variation and HND concurs, HND shall issue an appropriate modification to the contract. If the variation
is minor or does not involve a change in price or in time of performance, however, a modification need not be
issued.
H. It shall be the responsibility of the Contractor to make timely requests of the Architect for such large scale
and full size drawings, color schemes, and other cidditional information, not already in his possession, which
shall be required in the planning and production of the work. Such requests may be submitted as the need
arises, but each such request stiall be filed in ample time to pennit appropriate action to be taken by all
parties involved, so as to avoid delay.
I. The Contractor shall submit to the Architect for approval four copies (unless otherwise indicated) of all shop
drawings as called for under the various headings of these specifications. One set (unless otherwise
indicated) of all shop drawings will be retained by HND, the Architect, and the Owner, and one set will be
returned to the Contractor. As required by HND, the Contractor, upon completing work under this contract,
shall furnish a complete set of all shop drawings as finally approved. These drawings shall show all changes
and revisions made up to the time the work .is completed and accepted.
J. This clause shall be included in all subcontracts at any tier. It shall be the responsibility of the Contractor to
ensure that all shop drawings prepared by subcontractors are submitted to the Architect.
K. The Contractor shall provide with each submittal for approval a certificate attesting that the products or
materials to be supplied are:
(1.) currently and readily available;
(2.) not obsolete or discontinued; and
(3.) not to be discontinued or deleted from the supplier or manufacturers stock within the next calendar
year.
Page 6 of 31
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
L. . Layouts and Floor Plans provided by HND are diagrammatic only and are intended to illustrate the general
intentions of HND only. They do not show all the work required, exact dimensions, or construction details.
6. As-Built Drawings.
A. "As-built drawings," as used in this clause, means drawings submitted by the Contractor or subcontractor at
any tier to show the construction of a particular structure or work as actually completed under the contract.
"As-built drawings" shall be synonymous with "Record drawings."
B. Within 5 days of notification of substantial completion, the Contractor shall provide the Architect accurate
information to be used in the preparation of permanent as-built drawings. For this purpose, the Contractor
shall record on one set of contract drawings all changes from the installations originally indicated, and record
final locations of underground lines by depth from finish grade and by accurate horizontal offset distances to
permanent surface improvements sUl;:h. as buildings, curbs, or edges of walks. No final payment will be made
to the contractor until the Architect has received accurate information to be used in the preparation of
permanent as-built drawings.
C. This clause shall be included in all subcontracts. It shall be the responsibility of the Contractor to ensure that
alias-built drawings prepared by subcontractors are submitted to the Architect.
7.
Mate"rial and Workmanship_ .-
A. All equipment, material, and articles furnished under this contract shall be new and of the most suitable
grade for the purpose intended, unless otherwise specifically provided in this contract. References in the
contract to equipment, material, articles, or patented processes by trade name, make, or catalog number,
shall be regarded as establishing a standard of. quality and shall not be construed as limiting competition.
The Contractor may use any equipment, material, article, or process that, in the judgment. of, and as
approved by HND and the Architect, is equal to that named in the specifications, unless otherwise
specifically provided in this contract.
B. Approval of equipment and materials:
(1.) The Contractor shall obtain HND and Architect approval of the machinery and mechanical and other
equipment to be incorporated into the work. When requesting approval, the Contractor shall furnish to
the Architect the name of the manufacturer, the model number, and other information concerning the
performance, capacity, nature, and rating of the machinery and mechanical and other equipment.
When required by this contract or by HND, the Contractor shall also obtain HND and Architect
approval of the material or articles that the Contractor contemplates incorporating into the work. When
requesting approval, the Contractor shall provide full information concerning the material or articles.
Machinery, equipment, material, and articles that do not have the required approval shall be installed
or used at the risk of subsequent rejection. .
(2.) When required by the specifications or HND, the Contractor shall submit appropriately marked
samples (and certificates related to them) for approval at the Contractor's expense, with all shipping
charges pre-paid. The Contractor shall label, or otherwise properly mark on the container, the material
or product represented, its place of origin, the name of the producer, the Contractor's name, and the
identification of the construction project for which the material or prOduct is intended to be used.
(3.) Certificates shall be submitted in triplicate, describing each sample submitted for approval and
certifying that the material, equipment. or accessory complies with contract requirements. The
certificates shall include the name and brand of the product, name of manufacturer, and the location
where produced.
C. Approval of a sample shall not constitute a waiver of HND or the Owner's right to demand full compliance
with contract requirements. Materials, equipment, and accessories may be rejected for cause even though
samples have been approved.
Page 70f 31
HND Form 402
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
. GENERAL CONDITIONS
Project #:
CDBG-02033
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D. Wherever materials are required to comply with recognized standards or specifications, such specifications
shall be accepted as establishing the technical qualities and testing methods, but shall not govern the
number of tests required to be made nor modify other contract requirements. HND may require laboratory
test reports on items submitted for approval or may approve materials on the basis of data submitted in
certificates with samples. Check tests will be made on materials delivered for use only as frequently as HND
determines necessary to insure compliance of materials with the specifications. The Contractor will assume
all costs of re-testing materials that fail to meet contract requirements and/or testing materials offered in
substitution for those found deficient.
E. After approval, samples will be kept on the job site until completion of work. They may be built into the work
after a substantial quantity of the materials they represent has been built in and accepted.
F. Prohibition against use of lead-based paint. The Contractor shall comply with the prohibition against the use
of lead-based paint contained in the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846) as
implemented by 24 CFR Part 35.
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8. Penn its , Licenses, and Codes.
A. The Contractor shall give all notices and comply with applicable laws, ordinances, codes, rules, and
regulations. Notwithstanding the requirement of the Contractor to comply with the drawings and
specifications in the contract, work shall comply with all applicable codes and regulations as amended by any
waivers. Before beginning the work, the contractor shall examine the drawings and specifications for
compliance with all applicable ordinances and codes bearing on the work and shall immediately report any
discrepancy it may discover to HND and the Architect. Where requirements of the drawings and
specifications fail to comply with such applicable ordinances or codes for the new or replaced work, HND will
adjust the contract by change order pursuant to the clause entitled "ChangesD herein to conform to such
ordinances or codes, unless waivers in writing covering the difference have been granted by proper
authority.
B. The Contractor shall secure and pay for all permits, fees, and licenses necessary for the proper execution
and completion of the work, whether or not covered by the specifications and drawings for the work.
9. Health, Safety, and Accident Prevention.
A. In .performing this contract, the Contractor shall:
(1.) Ensure that no laborer or mechanic shall be required to work in surroundings or under working
conditions which are unsanitary, hazardous, or dangerous to his/her health and/or safety as
determined under construction safety and health standards promulgated by the Secretary of Labor by
regulation;
(2.) Protect the lives, health, and safety of other persons;
(3.) Prevent damage to property, materials, supplies, and equipment; and,
(4.) Avoid work intenuptions.
B. For these purposes, the Contractor shall:
(1.) Comply with regulations and standards issued by the Secretary of Labor at 29 CFR Part 1926. Failure
to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety
Standards Act (Public Law 91-54,83 Statute 96), 40 U.S.C. 327 et seq.,
(2.) Include the terms of this clause in every subcontract so that such terms will be binding on each
subcontractor.
Page 8 of 31
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HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
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c.
10.
The Contractor shall maintain an accurate record of exposure data on all accidents incident to work
performed under this contract resulting in death, traumatic injury, occupational disease, or damage to
property, materials, supplies, or equipment, and shall report this data in the manner prescribed by 29 CFR
1904.
HND shall notify the Contractor of any non-compliance with these requirements and of the corrective action
required. This notice, when delivered to the Contractor or the Contractor's representative at the site of the
work, shall be deemed sufficient notice of the non-compliance and corrective action required. After receiving
the notice, the Contractor shall immediately take corrective action. If the Contractor fails or refuses to take
corrective action promptly, HND may issue an order stopping all or part of the work until satisfactory
corrective action has been ta~en. The Contractor shall not base any claim or request for equitable
adjustment for additional time ormoney on any stop order issued under these circumstances.
The Contractor shall be responsible for his subcontractors' compliance with the provisions of this clause. Tl)e
Contractor shall take such action with respect to any subcontract as HND, the Secretary of Housing and
Urban Development, or the Secretary of Labor shall direct as a means of enforcing such provisions.
Temporary Heating.
The Contractor shall provide and pay for temporary heating, covering, and enclosures necessary to properly protect
all work and materials against damage by dampness and cold, to dry out the work, and to facilitate the completion
of the work.. Any permanent heating equipment used shall be turned over to the Owner in the condition and at the
time required by the specifications.
D.
E.
11.
Availability and Use of Utility Services.
A. The Owner shall make all reasonably required amounts of utilities available to the Contractor from existing
outlets and supplies, as specified in the contract. Unless otherwise provided in the contract, the amount of
each utility service conSumed shall be charged to or paid for by the Contractor at prevailing rates charged to
the Owner. The Contractor shall carefully conserve any utilities furnished without charge. .
..B. The Contractor, at its expense and in a manner satisfactory to HND, shall install and maintain all necessary
temporary connections and distribution lines, and all meters required to measure. the amount of each utility
used for the purpose of determining charges. Before final acceptance of the work by the HND and the
Owner, the Contractor shall remove all the temporary connections, distribution lines, meters. and associated.
paraphernalia.
Protection of Existing Vegetation, Structures, Equipment, Utilities, and Improvements.
A. The Contractor shall preserve and protect all structures, equipment, and vegetation (such as trees, shrubs,
and grass) on or adjacent to the work site, which are not to be removed under this contract, and which do not
unreasonably interfere with the work: required under this contract~
B. The Contractor shall only remove trees when specifically authorized to do so, and shall avoid damaging
vegetation that will remain in plaCe. If any limbs or branches of trees are broken during performance of this
contract, or by the careless operation of equipment, or by workmen, the Contractor shall trim those limbs or
branches with a clean cut and paint the cut with a tree-pruning compound as directed by HND.
C. The Contractor shall protect from damage all existing improvements and utilities at or near the work site or
on adjacent property of a third party, the locations of which are made known to or should be known by the
Contractor. Prior to disturbing the ground at the construction site, the Contractor shall ensure that all
underground utility lines are clearly marked.
D. The Contractor shall shore up, brace,underpin, secure, and protect as necessary all foundations and other
parts of existing structures adjacent to, adjoining, and in the vicinity of the site, which may be affected by the
excavations or other operations connected with the construction of the project.
E. Any equipment temporarily removed as a result of work under this contract shall be protected, cleaned, and
replaced in the same condition as at the time of award of this contract.
12.
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HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS .. CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
F. New work, which connects to existing work, shall correspond in all respects with that to which it connects
and/or be similar to existing work unless otherwise required by the specifications.
G. No structural members shall be altered or in any way weakened without the written authorization of HND and
the Architect, unless such work is clearly specified in the plans or specifications.
H. If the removal of the existing work exposes discolored or unfinished surfaces, or work out of alignment, such
surfaces shall be refinished, or the material replaced as necessary to make the continuous work uniform and
harmonious. This, however, shall not be constmed to require the refiniShing or reconstruction of dissimilar
finishes previously exposed, or finished surfaces in good condition, but in different planes or on different
levels when brought together by the removal of intervening work, unless such refinishing or reconstruction is
specified in the plans or specifications:
I. The Contractor shall give all required notices to any adjoining or adjacent property owner or other party
before the commencement of any work.
J. The Contractor shall indemnify and save harmless HND, the Architect, and the Owner from any damages on
account of settlement or the loss of lateral support of adjoining property, any damages from changes in
topography affecting drainage, and from" all loss or expense and all damages for which HND, the Architect, or
the Owner may become liable in consequence of such injury or damage to adjoining and adjacent structures
and their premises.
K. The Contractor will repair any damage to vegetation, structures,equipment, utilities, or improvements,
inCluding those that are the property of a third party, resulting from failure to comply with the requirements of
this contract or failure to exercise reasonable care in performing the work. If the Contractor fails or refuses to
repair the damage promptly, HND may have the necessary work performed and charge the cost to the
Contractor.
.3. Temporary Buildings and Transportation of Materians.
A. Temporary buildings (e.g., storage sheds, shops, offices; sanitary facilities) and utilities may be erected by the
Contractor only with the approval of HND and the Owner and shall be built with labor and materials furnished by
the Contractor without expense to HND or the Owner. The temporary buildings and utilities shall remain the
property of the Contractor and shall be removed at the Contractor's expense upon completion of the work. With
the written consent of HNDand the Owner, the buildings and utilities may be abandoned and need not be
removed.
B. The Contractor shall, as directed by HND,use only established roadways, or use temporary roadways constructed
by the Contractor when and as authorized by HND. When materials are transported in prosecuting the work,
vehicles shall not be loaded beyond the loading capacity recommended by the manufacturer of the vehicle or
prescribed by any federal, state, or local law or regulation. When it is necessary to cross curbs or sidewalks, the
Contractor shall protect them from damage. The Contractor shall repair or pay for the repair of any damaged
curbs, sidewalks, or roads.
14. Clean Air and Water (Applicable to Contracts in Ex(:ess of $100,000).
A. Definition. "Facility" means any building, plant, installation, structure, mine, vessel or other floating craft,
location, or site of operations, owned, leased, or supervised by the Contractor or any subcontractor, used in
the performance of the contract or any subcontract. When a location or site of operations includes more than
one building, plant, installation, or structure, the entire location or site shall be deemed a facility except when
the Administrator, or a designee, of the Environmental Protection Agency (EPA) determines that independent
facilities are collocated in one geographical area.
B. In compliance with regulations issued by the United States Environmental Protection Agency (EPA), 40 CFR
Part 15, pursuant to the Clean Air Act, as amended ("Air Act"), 42 U.S.C. 7401, et seq., the Federal Water
Pollution Control Act, as amended ("Water Act"), 33 U.S.C. 1251, et seq., and Executive Order 11738, the
Contractor agrees to:
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(Rev. 06103)
(1.) Not utilize any facility in the performance of this contract or any subcontract which is listed on the EPA
List of Violating Facilities pursuant to Part 15 of the regulations for the duration of time that the facility
remains on the list;
(2.) Promptly notifyHND if a facility the Contractor intends to use in the performance of this contract is on
the EPA List of Violating Facilities or the Contractor knows that it has been recommended to be placed
on the List;
(3.) Comply with all requirements of the Air Act and the Water Act, including requirements of Section 114
of the Air Act and Section ,308 of the Water Act, and all applicable clean air and clean water standards;
and,
(4.) Include or cause to be included the provisions of this clause in every subcontract, and take such action
as HUD may direct as a means of enforcing such provisions.
15. Energy Efficiency.
The Contractor shall comply with all standards and policies relating to energy efficiency which are contained in the
energy conservation plan issued in compliance with the Energy Policy and Conservation Act (public Law 94-163)
for the State of Georgia.
16.
Inspection and Acceptance of Construction.
A. Definitions. As used in this clause:
(1.) "Acceptance" means the act of HND by which HND and the Architect approve and the Owner
assumes ownership of the work performed under this contract. Acceptance may be partial or
complete.
(2.) "Inspection" means examining and testing the work performed under the contract (including, when
appropriate, raw materials, equipment, components, and intermediate assemblies) to determine
whether it conforms to contract requirements.
. (3.) "Testing" means that element of inspection that determines the properties or elements, including
functional operation of materials, equipment, or their components, by the application of established
scientific principles and procedures.
B. The Contractor shall maintain an adequate quality control system and will ensure that the work performed
under the contract conforms to contract requirements. All work is subject to inspection and test by HND and
the Architect at all places and at all reasonable times before acceptance to ensure strict compliance with the
terms of the contract. If HND requires the contractor to work overtime, on weekends or on holidays, the
contractor must first notify HND in writing ofthe overtime schedule. If HND determines it necessary to have
HND or Architect staff present or on call during the contractor's overtime, the contractor shall reimburse HND
or the Architect for the staff costs at time and half the regular. staff rate. Should the contractor fail to
reimburse HND by the next progress payment requested by the contractor, HND shall deduct such
reimbursement from the contractor's next progress payment. .
C. HND and Architect inspections and tests. are for the benefit of HND and the Owner and do not:
(1.) relieve the Contractor of responsibility for providing adequate quality control measures;
(2.) relieve the Contractor of responsibility for loss or damaged material before acceptance;
(3.) constitute or imply acceptance; or,
(4.) affect the continuing rights of the Owner after acceptance of the completed work under paragraph J
below.
The presence or absence of HND or the Architect does not relieve the Contractor from any contract
requirement, nor is he authorized to change any term or condition. of the specifications without HND's written
authorization. HND shall give all instructions and approvals with respect to the work to the Contractor.
D.
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HND Form 402 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06103) GENERAL CONDITIONS CDBG-02033
E. The Contractor shall promptly furnish, without additional. charge, all facilities, labor, and material reasonably
needed for performing such safe and convenient inspections and tests as may be required by HND. HND
may. charge to the Contractor any additional co~1 of inspection or test when work is not ready at the time
specified by. the Contractor for inspection or test, or when prior rejection makes re-inspection or retest
necessary. HND shall perfonn all inspections and tests in a manner that will not unnecessarily delay the
work. Special, full size, and performance tests shall be performed as described in the contract.
F. HND and the Architect may conduct routine inspections of the construction site on a daily basis.
G. The Contractor shall, without charge, replace or correct work found by HND or the Architect not to conform to
contract requirements, unless HND decides that it is In their interest or that of the Owner to accept the work
with an appropriate adjustment in contract price. The Contractor shall promptly segregate and remove
rejected material from the premises.
H. If the Contractor does not promptly replace or correct rejected work, HND may: .
(1.) by contract or otherwise, replace or correct the work and Charge the cost to the Contractor;
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(2.) terminate for default the Contractor's right to proceed.
I. If any work requiring inspection is covered up without approval of HND, it must, if requested by HND, be
uncovered at the expense of the Contractor. If at any time before final acceptance of the entire work, HND
considers it necessary or advisable to examine work already completed by removing or tearing it out, the
Contractor shall, on request, promptly fumish all necessary facilities, labor, and material. If such work is
found to ~e defective or non-conforming in any material respect due to. the fault of the Contractor or its
subcontractors, the Contractor shall defray all the expenses of the examination and of satisfactory
reconstruction. If, however, such work is found to meet the requirements .of the contract, HND shall make an
equitable adjustment to cover the cost of the examination and reconstruction, including, if completion of the
work was thereby delayed, an extension of time.
J. The Contractor shall notify HND and the Architect as to the date when in its opinion all or a designated
portion of the work will be substantially completed and ready for inspection. If HND and the Architect
determine that the state of preparedness is as represented, the inspection will be completed promptly.
Unless otherwise specified in the contract, HND shall accept, as soon as practicable after completion and
inspection, all work required by the contract or that portion of the work HND and the Architect determine and
designate can be accepted separately. Acceptance shall be final and conclusive except for latent defects,
fraud, gross mistakes amounting to fraud, or the Owner's right under an,y warranty or guarantee.
17. Use and Possession Prior to Completion.
A. The Owner shall have the right to take possession of or use any completed or partially completed part of the
work. Before taking possession of or using any work, the Architect shall furnish the Contractor a list of items
of work remaining to be performed or corrected on those portions of the work that the Owner intends to take
possession of or use. However, failure of HND or the Architect to list any item of work shall not relieve the
Contractor of responsibility for complying with the terms of the contract. The Owner's possession or use shall
not be deemed an acceptance of any work under the contract.
B. While the Owner has such posseSSion or use, the Contractor shall be relieved of the responsibility for.
(1.) the loss of or damage to the work resulting from the Owner's possession or use, notwithstanding the
terms of the "Penn its, Licenses, and Codes" clause of this contract;
(2.) all maintenance costs on the areas occupied; and,
(3.) furnishing heat, light, power, and water used in the areas occupied without proper remuneration.
C. If prior possession or use by the Owner delays the progress of the work or causes additional expense to the
Contractor, an equitable adjustment shall be made in the contract price or the time of completion, and the
contract shall be modified in writing accordingly.
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
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18.
Warranty of TItle.
The Contractor warrants good title to all materials, supplies, and equipment incorporated in the work and agrees to
deliver the premises, together with all improvements thereon, free fr'om any claims, liens or charges, and agrees
further that neither it nor any other. person, firm or corporation shall have any right to a lien upon the premises or
anything appurtenant thereto.
19.
Warranty of Construction.
A. In addition to any other warranties in this contract, the Contractor warrants, except as .provided in paragraph
J of this clause, that work performed under this contract conforms to the contract requirements and is free of
any defect in equipment, material, or workmanship performed by himself, any subcontractor, or supplier at
any tier. This warranty shall continue for a perlodof one year from the date of final acceptance of the work. If
the Owner takes possession of any part of the work before .final. acceptance, this warranty shall continue for
a period of one year from the date that the Owner takes possession.
B. The Contractor shall remedy, at the Contractor's expense, any failure to conform, or any defect. In addition,
the Contractor shall remedy, at the Contractor's expense, any damage to the Owner's owned or controlled
real or personal property when the damage is the result of:
(1.) the Contractor's failure to conform to contract requirements; or
(2.) any defects of equipment, material, workmanship or design furnished by the Contractor.
C. The Contractor will restore any work damaged in fulfilling the terms of this clause. The Contractor's warranty
with respect to work repaired or replaced will run for one year from the date of repair or replacement.
D. The Owner shall notify the Contractor, in writing, within a reasonable time after the discovery of any failure,
defect, or damage.
E. If the Contractor fails to remedy any failure, defect, or damage within a reasonable time after receipt of
notice, HND shall have the right to replace, repair, or otherwise remedy the failure, defect, or damage at the
. Contractor's expense.
F. . WIth respect to all warranties, express or implied, from subcontractors, manufacturers, or suppliers for work
performed and materials furnished under this contract, the Contractor shall:
(1.) 'obtain all warranties that would be given in normal commercial practice;
(2.) require all warranties to be executed in writing, for the benefit of the Owner; and,
(3.) enforce all warranties for the benefit of the Owner.
G. .'. In the event the Contractor's warranty under this clause has expired, the Owner may bring suit at its own
expense to enforce a subcontractor, manufacturer, or supplier warranty.
H. Unless a defect is caused by the negligence of the Contractor or subcontractor at any tier, the Contractor
shall not be liable for the repair of any defective material furnished by the Owner, nor for the repair of any
damage that results from any defect in Owner. furnished material.
I. Notwithstanding any provisions herein to the contrary, the establishment of the time periods in paragraphs A
and C above relate only to the specific obligation of the Contractor to correct the work, and have no
relationship to the time within which his obligation to comply with the contract may be sought to be enforced,
nor to the time within which proceedings may be commenced to establish the Contractor's liability with
respect to its obligation other than specifically to correct the work.
J. This warranty shall not limit the Owner's rights under the "Inspection and Acceptance of Construction"
clause of this contract with respect to latent defects, gross mistakes or fraud.
Prohibition Against Liens.
The Contractor is prohibited from placing a lien on the property of HND or Augusta-Richmond County, or it's
officers or agents. This prohibition shall apply to all subcontractors at any tier and all material suppliers.
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- _ -j I ~: - - :~--- I ADMINIST:RATltE REQUIREMENTS
1. Contract Period.
The Contractor shall complete all work required under this contract within the time schedule established in the
Notice to Proceed issued by HND.
2. Order of Precedence.
In the event of a conflict between these General Conditions and the Specifications, the General Conditions shall
prevail. In the event of a conflict between the contract and any applicable state or local law or regulation, the state
or local law or regulation shall prevail; provided that such state or local law or regulation does not conflict with, or is
less restrictive than applicable federal law, regulation, or Executive Order. In the evenfof such a conflict, applicable
federal law, regulation, or Executive Order shall prevail.
3. Payments to Contractor.
A. Payments to the Contractor will be made by HND on behalf of the Owner. HND shall pay the Contractor the
. price as provided in this contract.
B. Before any payment is made, an inspection by an HND Rehabilitation Inspector-and the Architect must be
performed. HND shall make progress payments approximately every 30 days on the HND-determined value
of work accomplished that meets the standards of quality established under the contract, as approved by
HND and the Architect. HND may, with the approval of the Director, make more frequent payments to
contractors that are qualified small businesses.
C. Before the first progress payment under this contract, the Contractor shall furnish, in such detail as
requested by HND, a breakdown of the total contract price showing the amount for each principal. category of
the work, which shall substantiate the payment requested and provide a basis for determining progress
payments. The breakdown shall be approved by HND. If the contract covers more than one project, the
Contractor shall furnish a separate breakdown for each. The values and quantities employed in making up
this breakdown are for determining the amount of progress payments and shall not be .construed as a basis
for additions to or deductions from the contract price.
D. The Contractor shall submit, on forms provided by HND, requests for payment showing the value of the work
performed during the period based upon the approved breakdown of the contract price. Such payment
requests shall be submitted only for work completed during that period and are subject to correction and
revision as required. HND, the Architect, and the Owner must approve the estimates prior to payment. If the
contract covers more than one project, the Contract()r shall furnish a separate progress payment estimate for
. each.
E. The HND payment request shall include the following certification, which shall be signed by the Contractor,
or payment shall not be made:
"I hereby certify, to the best of my knowledge .and belief, that:
(1.) The amounts requested are only for performance in accordance with the specifications, terms, and
conditions of the contract;
(2.) Payments to subcontractors and suppliers have been made from previous payments received under
the contract, and timely payments will be made from the proceeds of the payment covered by this
certification, in accordance with subcontract agreements; and,
(3.) This request for progress payments does not include any amounts that the prime contractor intends to
withhold or retain from a subcontractor or supplier in accordance with the terms and conditions of the
subcontract. ·
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG.02033
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F. Except as otherwise provided in State law, HND shall retain ten (10) percent of the amount of progress
payments until completion and acceptance of all work under the contract; except, that if upon completion of
50 percent of the work, HND, after consulting with the Architect, determines that the Contractor's
performanCe and progress are satisfactory, HND may make the remaining payments in full for the work
SUbsequently completed. If HND and the Architect subsequently determine that the Contractor's performance
and progress are unsatisfactory, HND shall reinstate the ten (10) percent retainage until such time as HND
and the Architect determine that performance and progress are satisfactory. .
G. HND may authorize material delivered on the site and preparatory work already completed to be taken into
consideration when computing progress payments. Material delivered to the Contractor at locations other
than the site may also be taken into consideration if the Contractor furnishes satisfactory evidence that:
(1.) it has acquired title to such material;
(2.) the material is properly stored in a bonded warehouse, storage yard, or similar suitable place as may
be approved by HND;
(3;) the material is insured to cover its full value; and
(4.) the material will be used to perform this contract.
H. Before any progress payment that includes delivered material is made, the. Contractor shall furnish such
documentation as HND may require assuring. the protection of the Owner's interest in such materials. The
Contractor shall remain responsible for such stored material notwithstanding the transfer of title to the
Owner.
All material and work covered by progress payments made shall, at the time of payment become the sole
property of the Owner, but this shall not be constnJed as:
(1.) relieving the Contractor from the sole responsibility for all material and work upon which payments
have been made or the restoration of any damaged work; or,
(2.) waiving the right of the Ownefto require the fulfillment of all ofthe terms of the contract.
In the event the Contractor's work has been damaged by other contractors or persons other than employees
of HND, the Architect, or the Owner in the course of their employment, the Contractor shall restore such
damaged work without cost to HND or the Owner and seek redress for its damage only from those who
directly caused it.
K. HND shall make the final payment due the Contractor under this contract after:
(1.) completion and final acceptance of all work; and
(2.) presentation of release of all claims against HND or the Owner arising. by virtue of this contract, other
than claims, in stated amounts, that the Contractor has specifically excepted from the operation of the
release. Each such exception shall embrace no more than one claim, the basis and scope of which
shall be clearly defined.
L. The amounts for such excepted claims shall not be included in the request for final payment. A release may
also be required of the assignee if the Contractor's claim to amounts payable under this contract has been
assigned.
M. Prior to making any payment, HND may require the Contractor to furnish receipts or other evidence of
payment from all persons performing work and supplying material to the Contractor, if HND determines such
evidence is necessary to substantiate claimed costs.
N. . Prompt Pay Act. This Agreement is intended by the Parties to, and does, supersede any and all provisions of
the Georgia Prompt Pay Act, O.C.G.A. Section 13-11-1, et seq. In the event any provision of this Agreement
is inconsistent with any provision of the Prompt Pay Act, the provision of this Agreement shall control.
O. HND shall not:
(1.) determine or adjust any claims for payment or disputes arising thereunder between the Contractor and
its subcontractors or material suppliers; or,
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HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
(2.) withhold any money for the protection of the subcontractors or material suppliers. The failure or refusal
of HND to withhold money from the Contractor shall in nowise impair the obligations of any surety or
sureties under any bonds furnished under this contract.
4. Contract Modifications.
A. Only HND has authority to modify any term or condition of this contract. Any contract modification shall be
authorized in writing.
B. HND may modify the contract unilaterally:
(1.) pursuant to a specific authorization stated in a contract clause (e.g., Changes); or
(2.) for administrative matters which do not change the rights or responsibilities of the parties (e.g.,
changes in addresses). All other contract modifications shall be in the form of supplemental
agreements signed by HND, the Contractor, and the Owner.
C. When a proposed modification requires the approval of the Augusta~Richmond County Commission prior to
its issuance (e.g., a change order that exceeds the Owner's approved threshold), modification shall not be
effective until the required approval is received by HND.
5.
Changes.
A. HND may at any time, without notice to the sureties, by written order indicated to be a change order, make
changes in the work within the general scope of the contract including changes:
(1.) in the specifications (including drawings and designs);
. (2.) in the method or manner of performance of the work;
(3.) owner furnished facilities, equipment, materials, services, or site; or,
(4.) directing the acceleration in the performance of the work.
B. Any other written order or oral order (which, as used in this paragraph, includes direction, instruction,
interpretation, or determination) from HND that causes a change shall be treated as a change order;
provided, that the Contractor gives HND written notice stating:
(1.) the date, circumstances and source of the order; and
(2.) that the Contractor regards the order as a change order.
C; Except as provided in this clause, no order, statement, or conduct of HND shall be treated as a change
under this clause or entitle the Contractor to an equitable adjustment.
D. If any change under this clause causes an increase or decrease in the Contractor's cost or the time required
for the performance of any of the work under this contract, whether or not changed by any such order, HND
shall make an equitable adjustment and modify the contract in writing. However, except for an adjustment
based on defective specifications, no proposal for any change under paragraph B above shall be allowed for
any costs incurred more than 20 days (5 days for oral orders) before the Contractor gives written notice as
required. In the case of defective specifications for which HND or the Architect is responsible, the equitable
adjustment shall include any increased cost reasonably incurred by the Contractor in attempting to comply
with the defective specifications. ,
E. The Contractor must assert its right to an adjustment under this clause within 30 days after:
(1.) receipt of a written change order under paragraph A of this clause; or
(2.) the furnishing of a written notice under paragraph B of this clause, by submitting a written statement
describing the general nature and the amount of the proposal.
F. If the facts justify it, HND may extend the period for submission. The proposal may be included in the notice
required under paragraph B above. No proposal by the Contractor for an equitable adjustment shall be
allowed if asserted after final payment under this contract.
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
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G. The Contractor's written proposal for equitable adjustment shall be submitted in the form of a lump sum
.proposal supported with an itemized breakdown of all increases and decreases in the contract in at least the
following details: . .
H. Direct Costs. Materials (list individual items, the quantity and unit cost of each, and the aggregate cost);
Transportation and. delivery costs associated with materials; Labor breakdowns by hours or unit costs
(identified with specific work to be performed); Construction equipment exclusively necessary for the change;
Costs of preparation and/or revision to shop drawings resulting from the change; Worker's Compensation
and Public Liability Insurance; Employment taxes under FICA and FUTA; and, Bond Costs - when size of
change warrants revision.
I. Indirect Costs. Indirect costs may include overhead, general and administrative expenses, and fringe
benefits not normally treated as direct costs.
J. ProfIt. The amount of profit shall be negotiated and may vary according to the nature, extent, and complexity
of the work required by the change.
K. The allowability of the direct and indirect costs shall be determined in accordance with the Contract Cost
Principles and Procedures for Commercial Firms in Part 31 of the Federal Acquisition Regulation (48 CFR 1-
31), as implemented by HUD Handbook 2210.18, in effect on the date of this contract. The Contractor shall
not be allowed a profit on the profit received by any subcontractor. Equitable adjustments for deleted work
shall include a credit for profit and may include a credit for indirect costs. On proposals covering both
increases and decreases in the amount of the contract, the application of indirect costs and profit shall be on
the net-change in direct costs for the Contractor or subcontractor performing the work.
The Contractor shall include in the proposal its request for time extension (if any), and shall include sufficient
information and dates to demonstrate whether and to what extent the change will delay the completion of the
contract in its entirety.
HND shall act on proposals within 30 days after their receipt, or notify the Contractor of the date when such
action will be taken.
Failure to reach an agreement on any proposal shall be a dispute under the clause entitled "Disputes"
herein. Nothing in this clause, however, shall excuse the Contractor from proceeding with the contract as
changed.
O. Except in an emergency endangering life or property, no change shall be made by the Contractor without a
prior order from HND.
6. Suspension of Work.
A. HND may order the Contractor in writing to suspend, delay, or interrupt all or any part of the work of this
contract for the period of time that HND determines appropriate for the convenience of HND or the Owner.
B. If the performance of all or any part of the work is, for an unreasonable period of time, suspended, delayed,
or interrupted:
(1.) By an act of HND in the administration of this contract; or
(2.) By HND's failure to act within the time specified in this contract (or within a reasonable time if not
specified); .
an adjustment shall be made for any increase in the cost of performance of the contract (excluding profit)
necessarily caused by such unreasonable suspension, delay, or interruption and the contract modified in
writing accordingly. However, no adjustment shall be made under this clause .for any suspension, delay, or
interruption to the extent that performance would have been so suspended, delayed, or interrupted by any
other cause, including the fault or negligence of the Contractor or for which any equitable adjustment is
provided for or excluded under any other provision of this contract.
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
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C. A claim under this clause shall not be allowed:
(1.) For any costs incurred more than 20 days before the Contractor shall have notified HND in writing of
the act or failure to act involved (but this requirement shall not apply as to a claim resulting from a
suspension order); and,
(2.) Unless the claim, in an amount stated, is asserted in writing as soon as practicable after the
termination of the suspension,. delay, or interruption, but not later than the date of final payment under
the contract.
7. Disputes.
A. "Claim," as used in this clause, means a written demand or assertion by one of the contracting parties
seeking, as.a matter of right, the payment of money in a sum certain, the adjustment or interpretation of
contract terms, or other relief arising under or relating to the contract. A claim arising under the contract,
unlike a claim relating to the contract, is a claim that can be resolved under a contract clause that provides
for the relief sought by the claimant. A voucher, invoice, or other routine request for payment that is not in
dispute when submitted is not a claim. The submission may be converted to a claim by complying with the
requirements of this clause, if it is disputed either as to liability or amount or is not acted upon in a
reasonable time. .
B. . Except for disputes arising under the clauses entitled "Labor Standards" and "Labor Standards' - Non-
routine Maintenance", all. disputes ariSing under or relating to this contract, including any claims for
damages for the alleged breach thereof which are not disposed of by agreement, shall be resolved under this
clause.
C. All claims by the Contractor shall' be made in writing within ten (10) calendar days from the date of the
occurrence of the dispute and submitted to HND for a written decision. A claim by the Owner against the
Contractor shall be subject to a written decision by HND. All claims by the Contractor shall be made in writing
and submitted to HND for a written decision.
D. HND shall, within 60 days after receipt of the request, decide the claim or notify the Contractor of the date by
which the decision will be made.
E. HND's decision shall be final unless the Contractor:
(1.) appeals in writing to the HND Director in accordance ~th HND's policies and procedures;
(2.) refers the appeal to the County Administrator for independent mediation or arbitration in accordance
with HND's policies and procedures.
F. Such appeal must be made within 14 days after receipt of HND's decision.
G. The Contractor shall proceed diligently with performance of this contract, pending final resolution of any
request for relief, claim, appeal, or action arising under or relating to the contract, and comply with any
decision of HND.
H. This Agreement is intended by the Parties to, and does, supersede any and all provisions of the Georgia
Prompt Pay Act, O.C.GA Section 13-11-1, et seq. In the event any provision of this Agreement is
. inconsistent with any provision of the Prompt Pay Act, the provision of this Agreement shall control.
I. All claims, disputes and other matters in question between the Owner and the Contractor arising out of or
relating to the Agreement, or the breach thereof, shall be decided in the Superior Court of Richmond County,
Georgia. The Contractor, by executing this Agreement, specifically consents to jurisdiction and venue in
Richmond County and waives any right to contest the jurisdiction and venue in the Superior Court of
Richmond County, Georgia.
J. Notwithstanding any provision of the law to the contrary, the parties agree that no interest shall be due
Contractor on any sum-held as retainage pursuant to this Agreement and Contractor specifically waives any
claim to same.
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CONTRACT DOCUMENTS -- CONSTRUCTION
.
GENERAL CONDITIONS
Project #:
CDBG-02033
K. Notwithstanding any provision of the General Conditions, there shall be no substitution of materials or
change in means, methods, techniques, sequences or proce~ures of construction that are not determined to
be equivalent to those indicated or required in the Contract Document, without an Amendment to the
Contract.
L. Contractor acknowledges that all records relating to this Agreement and the services to be provided under
the contract may be a public record subject to Georgia's Open Records Act (O.C.G.A. 950-18-70, et seq.).
Contractor shall cooperate fully in responding to such request and making all records, not exempt, available
for inspection and copying as provided by law.
8. Default.
A. HND may declare the Contractor in default by written notice thereof to the Contractor, and terminate the
whole or any part of this Contract for a-ny of the following reasons:
(1.) Failure to begin work within the time specified in the Contract or as otherwise specified;
(2.) Failure to perform the work with sufficient labor, equipment, or material to insure the completion of the
specified work in accordance with the Contract terms;
(3.) Unsatisfactory performance of the work;
(4.) Failure or refusal to remove material, or remove and replace any work rejected as defective or
unsatisfactory;
(5.) Discontinuance of work without approval;
(6.) Failure to resume work, which has been discontinued, within a reasonable time after notice to do so;
(7.) Insolvency or bankruptcy;
(8.) Assignment made for the benefit of creditors;
(9.) Failure or refusal within 10 days after payment by HND or upon written notice by HND, to make
payment or show cause why payment should not be made, of any amounts due for materials
furnished, labor performed, equipment rentals, or utility services rendered;
(10.) Failure to protect, to repair, or to make good any damage or injury to property; or
(11.) Breach of any provision of this Contract.
B. In the event that HND terminates this Contract in whole or in part as provided In Subparagraph A above,
HND may procure, upon such terms and in such manner as it determines, services similar or identical to
those so terminated, and the Contractor shall be liable to HND for any reasonable excess costs for such
similar or identical services included within the terminated part of the Contract.
C. If the Contract is terminated as provided in Subparagraph A above, HND, in addition to any other rights
provided in this paragraph, may require the Contractor to transfer title and deliver immediately to the OWner
in the manner and to the extent directed by HND, such partially completed work, including, where applicable,
reports, working papers and other documentation, as the Contractor has specifically produced or specifically
acquired for the performance of such part of the Contract as has been terminated. Payment for completed
work accepted by HND shall be at the Contract price. Except as provided below, payment for partially
completed work including reports and working papers, delivered to and accepted by HND shall be in an
amount agreed upon by the Contractor and HND. HND may withhold from amounts otherwise due the
Contractor for such completed or partially completed works, such sum as HND determines to be necessary
to protect HND and the OWner against loss.
D. The rights and remedies of HND provided in this paragraph shall not be exclusive and are in addition to any
other rights and remedies provided by law Or under this Contract.
E. HND failure to exercise any rights or remedies provided in this paragraph shall not be construed to be a
waiver by HND of its rights and remedies in regard to the event of default or any succeeding event of default.
Page 19 of 31
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CONTRACT DOCUMENTS -- CONSTRUCTION.
GENERAL CONDITIONS
Project #:
CDBG-02033
F. The Contractor's right to proceed shall not be terminated or the Contractor charged with damages under this
clause if the delay in completing the work arises from unforeseeable causes beyond the control and without
the fault or negligence of the ContraCtor. Examples of such causes include:
(1.) acts of God, or ofthe public enemy;
(2.) . acts of the Owner, HND, or other governmental entity in either .lts sovereign or contractual capacity;
(3.) acts of another contractor in the performance of a contract with HND or the Owner;
(4.) fires;
(5.) floods;
(6.) epidemics;
(7.) quarantine restrictions;
(8.) strikes;
(9.) freight embargoes;
(10.) unusually severe weather; or
(11.) delays of subcontractors or suppliers at any tier arising from unforeseeable causes beyond the control
and without the fault or negligence of both the Contractor and the subcontractors or suppliers.
G. The Contractor, within 10 days from the beginning of such delay (unless extended by HND) must notify HND
in writing of the causes of delay. HND shall ascertain the facts and the extent. of the delay. If, in the judgment
of HND, the findings of fact warrant such action, time for completing the work shall be extended by written
modification to the contract. The findings of HND shall be reduced to a written decision that shall be subject
to the provisions of the "Disputes" clause of this contract.
H. If, after termination of the Contractor's right to pf'()ceed, it is determined that the Contractor was not in
default, or that the delay was excusable, the rights and obligations of the parties will be the same as if the
termination had been for convenience of HND and the Owner.
9. Liquidated Damages.
A. If the Contractor fails to complete the work within the time specified in the contract, or any extension, as
specified in the clause entitled "Default" of this contract, the Contractor shall pay to the Owner, as liquidated
damages, the sum of $100.00 for each day of delay. If different completion dates are specified in the contract
for separate parts or stages of the work, the amount of liquidated damages shall be assessed on those parts
or stages which are delayed. To the extent that the Contractor's delay or nonperformance is excused under
another clause in this contract, liquidated damages shall not be due the Owner. The Contractor remains
liable for damages caused other than by delay.
B. If HND terminates the Contractor's right to proceed, the resulting damage will consist of liquidated damages
until such reasonable time as may be required for final completion of the work together with any increased
costs occasioned HND in completing the work.
C. If HND does not terminate the Contractor's right to proceed, the resulting damage will consist of liquidated
damages until the work is completed or accepted.
10. Tennination for Convenience.
A. HND may terminate this contract in whole, or in part, whenever HND determines that such termination is in
the best interest of HND and the Owner. Any such termination shall be effected by delivery to the Contractor
of a Notice of Termination specifying the extent to which the performance of the work under the contract is
terminated, and the date upon which such termination becomes effective.
B. If the performance of the work is terminated, either in whole or in part, HND and the Owner shall be liable to
the Contractor for reasonable and proper costs resulting from such termination upon the receipt by HND of a
properly presented claim setting out in detail:
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HND Form 402
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(1.) the total cost of the work performed to date of termination less the total amount of contract payments
made to the Contractor;
(2.) the cost (including reasonable profit) of settling and paying claims under subcontracts and material
orders for work performed and materials and supplies delivered to the site, payment for which has not
been made by HND to the Contractor or by the Contractor to the subcontractor or supplier;
(3.) the cost of preserving and protecting the work already performed until the Owner or assignee takes
possession thereof or assumes responsibility therefor;
(4.) the actual or estimated cost of legal and accounting services reasonably necessary to prepare and
present the termination claim to HND; and
(5.) an amount constituting a reasonable profit on the value of the work performed by the Contractor.
C. HND will act on the Contractor's claim within 60 days of receipt of the Contractor's claim.
D. Any disputes with regard to this clause are expressly made subject to the provisions of the "Disputes"
clause of this contract.
11. Assignment of Contract.
A. Subject to the terms and conditions of this Contract, this Contract shall be binding upon the parties and their
respective successors and assigns.
B. The Contractor shall not subcontract with any person or entity to perform all or any part of the work to be
performed under this Contract without the prior written consent of HND, which consent may be withheld at
the sole and absolute discretion of HND.
The Contractor may not assign, in whole or in part, this Contract or its rights, duties, obligations, or
responsibilities hereunder without the prior written consent of HND, which consent may be withheld at the
sole and absolute discretion of HND.
The Contractor may not, without the consent of HND, assign its rights to payment to be received under the
Contract.
For the purposes of this Contract, the term "assign" shall include, but shall not be limited to, the sale, gift.,
assignment, pledge, or other transfer of any ownership interest in the Contractor provided, however, that the
term shall not apply to the sale or other transfer of stock of a publicly traded company.
F. Any assignment consented to by HND shall be evidenced by a written assignment agreement executed by
the Contractor and its assignee in which the" assignee agrees to be legally bound by all of the terms and
conditions of the Contract and to assume the duties, obligations, and responsibilities being assigned.
C.
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G. A change of name by the Contractor, following which the Contractor's federal tax identification number
remains unchanged, shall not be considered to be an assignment hereunder. The Contractor shall give HND
written notice of any such change of name.
12. Insurance and Bonds.
A. Before commencing work, the Contractor and each subcontractor shall furnish HND with certificates of
insurance showing the following insurance is in force and will insure all operations under the Contract:
I
(1.)
(2.)
Workers' Compensation, in accordance with State of Georgia Workers' Compensation laws.
Commercial General Uability with a combined single limit for bodily injury and property damage of not
less than $1,000,000 amount) per occurrence to protect the Contractor arid each subcontractor
against claims for bodily injury or death and damage to the property of others. This shall cover the use
of all equipment, hoists, and vehicles on the site(s) not covered by Automobile Uability under (3)
below. If the Contractor has a "claims-made" policy, then the following additional requirements apply:
the policy must provide a "retroactive date" which must be on or before the execution date of the
Contract; and the extended reporting period may not be less than five years following the completion
date of the Contract.
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
(3.) Automobile Liability on owned and non-owned motor vehicles used on the site(s) or in connection
therewith for a combined single limit for bodily injury and property damage of not less than $1,000,000
per occurrence.
B. Before commencing work, the Contractor shall furnish HND with a certificate of insurance evidencing that
Builder's Risk (fire and extended coverage) Insurance on all work in place and/or materials stored at the
building site(s), including foundations and building equipment, is in force. The Builder's Risk Insurance shall
be for the benefit of the Contractor and the Owner as their interests may appear and each shall be named in
the policy or policies as an insured. The Contractor in installing equipment supplied by the Owner shall carry
insurance on such equipment from the time the Contractor takes possession thereof until HND and the
Owner accept the Contract work. The Builder's Risk Insurance need not be carried on excavations, piers,
footings, or foundations until such time as work on the superstructure is started. It need not be carried on
landscape work. Policies shall fumish coverage at all times for the full cash value of all completed
construction, as well as materials in place and/or stored at the site(s), whether or not partial payment has
been made by HND. The Contractor may terminate this insurance on buildings as of the date taken over for
occupancy by the Owner. The Contractor is not required to carry Builder's Risk Insurance for modernization
work that does not involve structural alterations or additions and where the Owner's existing fire and
extended coverage policy can be endorsed to include such work.
C. Prior to signing of the Construction Contract, the Contractor must fumish a PerfonTIance Bond and Labor and
Material Payment Bond covering the faithful performance of the Contract and the payment of all obligations
arising thereunder, issued at 100% of the Contract Amount for all coverages. The PerfonTIance Bond and the
Labor and Material Payment Bond may be in one, or may be in separate instruments, in accordance with
local law.
D. The Contractor shall furnish copies of all insurance certificates to HND before commencing with the work,
showing evidence of coverage and naming as additional insured to the policies the Owner, including their
respective Commissioners, Board Members, Officers, Agents and Employees, individually and collectively.
The contractor shall not be allowed to commence work until the required certificates are provided to HND.
Additionally, should the insurance become ineffective or lapse during construction, HND shall require the
contractor to cease work until such time as the contractor submits proof of insurance in compliance with the
requirements ofthis contract. Ifsuch suspension of work is necessary, the contractor shall not be entitled to
addition time to complete the work.
E. All insurance shall be carried with companies that are financially responsible and admitted to do business in
the State of Georgia. If any' such insurance is due to expire during the construction period, the Contractor
(including subcontractors, as applicable) shall not permit the coverage to lapse and shall furnish evidence of
coverage to HND. All certificates of insurance, as evidence of coverage, shall provide that no coverage may
be canceled or non-renewed by the insurance company until at least 30 days prior written notice has been
given to HND. .~
13. Subcontracts.
A. Definitions. As used in this contract:
(1.) "Subcontract" means any contract, purchase order, or other purchase agreement, including
modifications and change ordersto the foregoing, entered into by a subcontractor to furnish supplies,
materials, equipment, and services for the performance of the prime contract or a subcontract.
(2.) "Subcontractor" means any supplier, vendor,. or firm that fumishes supplies, materials, equipment,
and services for the performance of the prime contract or a subcontract.
B. No subcontract for assignment of this contract shall be made without the written consent of HND.
C. The Contractor shall not enter into any subcontract with any subcontractor who has been denied participation
in any HND or HUD program or who has been suspended or debarred from participating in contracting
programs by Augusta-Richmond County, HND, HlJD, or any other agency of the United States Government
or of the State of Georgia.
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
D. The Contractor shall be fully responsible for the acts or omissions of its subcontractors, and of persons either
directly or indirectly employed by them as for the acts or omissions of persons directly employed by the
Contractor.
E. The Gontractor shall insert appropriate clauses in all subcontracts to bind subcontractors to the terms and
conditions of this contract insofar as they are applicable to the work of subcontraCtors.
F. Nothing contained in this contract shall create any contractual relationship between any subcontractor and
HND or between any subcontractor and the Owner.
14. Subcontracting with Small and Minority Firms, Women's Business Enterprise, and Labor Surplus Area
Finns.
The Contractor shall take the following steps to ensure that, whenever possible, subcontracts are awarded to small
business firms, minority firms, women's business enterprises, and labor surplus area firms:
A. Pladng qualified small and minority businesses and women's business enterprises on solicitation lists;
B. Ensuring that small and minority businesses and women's business enterprises are solicited whenever they
are potential sources;
C. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum
participation by small and minority businesses and women's business enterprises;
O. Establishing delivery schedules, where the requirements of the contract permit, which encourage
participation by small and minority businesses and women's business enterprises; and
E. Using the services and assistance of the U.s. Small Business Administration, the Minority Business
Development Agency of the U.S. Department of Commerce, and State and local govemmental small
business agencies.
15. Equal Employment Opportunity.
A. During the performance of this contract, the Contractor agrees as follows:
(1.) The Contractor shall not discriminate against any employee or applicant for employment because of
race, color, religion, sex, national origin, or handicap.
(2.) The. Contractor shall take affirmative action to enSUfe that applicants afe employed, and that
employees are treated during employment without regard to their race. color, religion, sex, national
origin, or handicap. Such action shall include, but not be limited to:
(a) employment;
(b) upgrading;
(c) demotion;
(d) transfer;
(e) recruitment or recruitment advertising;
(f) layoff or termination;
(g) rates of payor other forms of compensation; and
(h) selection for training, including apprenticeship.
B. The Contractor shall post in conspicuous places available to employees and applicants for employment the
notices to be provided by HND that explain this clause.
C. The Contractof shall, in all solicitations Of advertisements for employees placed by or on behalf of the
Contractor, state that all qualified applicants will receive consideration for employment without fegard to race,
. COIOf, religion, sex, national origin, or handicap.
Page 23 of 31
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CONTRACT DOCUMENTS - CONSTRUCTION
GENERAL CONDITIONS
Project #:
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D. The Contractor shall send, to each labor union or representative of workers with which it has a collective
bargaining agreement or other contract or understanding, the notice. to be provided by HND advising the
labor union or workers' representative of the Contractor's commitments under this clause, and post copies of
the notice in conspicuous places available to employees and applicants for employment.
E. .The Contractor shalf comply with Executive Order 11246, as amended, and the rules, regulations, and orders
of the Secretary of Labor.
F. The Contractor shall furnish all information and reports required by Executive Order 11246, as amended,
Section 503 of the Rehabilitation Act of 1973, as amended, and by rules, regulations, and orders of the
Secretary of Labor, or pursuant thereto. The Contractor shall permit aCcess to its books, records, and
accounts by the Secretary of Labor for purposes of investigation to ascertain compliance with such rules,
regulations, and orders.
G. In the event of a determination that the Contractor is not in compliance with this clause or any rule,
regulation, or order of the Secretary of Labor, this contract may be canceled, terminated, or suspended in
whole or in part, and the Contractor may be declared ineligible for further Government contracts, or Federally
assisted construction contracts under the procedures authorized in Executive Order 11246~ as amended. In
addition, sanctions may be imposed and remedies invoked against the Contractor as provided in Executive
Order 11246, as amended, the rules, regulations, and orders of the Secretary of Labor, or as otherwise
provided by law.
H. The Contractor shall include the terms and conditions of this clause in every subcontract or purchase order
unless exempted by the rules, regulations, or orders of the Secretary of Labor issued under Executive Order
11246, as amended, so that these terms and conditions will be binding upon each subcontractor or vendor.
The Contractor shall take such action with respect to any subcontract or purchase order as the Secretary of
Housing and Urban Development or the Secretary of Labor may direct as a means of enforcing such
provisions, including sanctions for noncompliance; provided that if the Contractor becomes involved in, or is
threatened with, litigation with a subcontractor or vendor as a result of such direction, the Contractor may
request the United States to enter into the litigation to protect the interests of the United States.
16. Employment, Training, and Contracting Opportunities for Low-lncome Persons,Section 3 of the Housing
and Urban Development Act of 1968.
A. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and'
Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u (section 3). The purpose of section 3 is to
ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted
projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income
persons, particular1y persons who are recipients of HUD assistance. for housing.
B. . The parties to this contract agree to comply with HUD regulations in 24 CFR part 135, which implement
section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are
under no contractual or other impediment that would prevent them from complying with the part 135
regulations.
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C. The contractor agrees to send to each labor organization or representative of workers with which the
contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor
organization or workers representative of the contractors commitments under this section 3 clause, and will
post copies of the notice in conspicuous places at the work site where both employees and applicants for
training and employment positions can see the notice. The notice shall describe the section 3 preference,
shall set forth minimum number and job . titles subject to hire, availability of apprenticeship and training
positions, the qualifications for each; and the name and location of the person(s) taking applications for each
of the positions; and the anticipated date the work shall begin.
D. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with
regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision
of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the
regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the
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HND Form 402
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033.
contractor has knowledge that the subcontractor has been found in violation of the regulations in 24 CFR
part 135.
E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1)
after the contractor is selected but before the contract is executed, and (2) with persons other than those to
whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to
circumvent the contractors obligations under 24 CFR part 135. '
F. Noncompliance with HUD's regulations in 24 CFR part .135 may result in sanctions, termination of this
contract for default, and debarment or suspension from future HUD assisted contracts.
G. In the event of a determination by HND that the Contractor is not in compliance with this clause or any rule,
regulation, or report submission requirements of HND, this contract may be canceled, terminated, or
suspended in whole or in part, and the Contractor may be declared ineligible for further HND contracts.
17. Interest of Members of Congress.
No member of or delegate to the Congress of the United States of America shall be admitted to any share or part of
this contract or to any benefit that may arise therefrom.
18. Interest of Members, Officers, or Employees and Former Members, Officers, .or Employees.
No member, officer, or employee of HND, the Owner, no member of the governing body of Augusta-Richmond
County, and no other public official of Augusta-Richmond County who exercises any functions or responsibilities
with respect to the project, shall, during his or her tenure, or for one year thereafter, have any interest, direct or
indirect, in this contract or the proceeds thereof.
19. Limitations on Payments Made to Influence Certain Federal Financial Transactions.
A. The Contractor agrees to comply with Section 1352 of title 31, United States Code which prohibits the use of
Federal appropriated funds to pay any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, and officer or employee of Congress, or an employee of a
Member of Congress in connection with any of the following covered Federal actions: the awarding of any
Federal contract; the making of any Federal grant; the making of any Federal loan; the entering into of any
cooperative agreement; or the modification of any Federal contract, grant, loan, or cooperative agreement.
B. The Contractor further agrees to comply with the requirement of the Act to furnish a disclosure (OMB
Standard Form LLL, Disclosure of Lobbying Activities) if any funds other than Federal appropriated funds
(including profrt or fee received under a covered Federal transaction) have been paid, or will be paid, to any
person for influencing or attempting to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with
a Federal contract, grant, loan, or cooperative agreement.
C. Indian tribes (except those chartered by States) and Indian organizations as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450B) are exempt from the requirements of this
clause.
20. Royalties and Patents.
The Contractor shall pay all royalties and license fees. It shall defend all suits or claims for infringement of any
patent rights and shall save. HND and the Owner harmless from loss on account thereof; except that HND, the
Architect, and the Owner shall be responsible for all such loss when a particular design, process or the product of a
particular manufacturer or manufacturers is specified and the Contractor has no reason to believe that the specified
design, process, or prOduct is an infringement. If, however, the Contractor has reason to believe that any design,
process or product specified is an infringement of a patent, the Contractor shall promptly notify HND. Failure to give
such notice shall make the Contractor responsible for resultant loss.
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
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21. Examination and Retention of Contractor's Records.
A. HND, HUD, or the Comptroller General of the United States, or any of their duly authorized representatives
shall, until 3 years after.final payment under this contract, have access to and the right to examine any of the
Contractor's directly pertinent books, documents, papers, or other records involving transactions related to
this contract for the purpose of making audit, examination, excerpts, and transcriptions.
B. The Contractor agrees to include in first-tier subcontracts under this contract a clause substantially the same
as paragraph (a) above. "Subcontract," as used in this clause, excludes purchase orders under $10,000..
C. The periods of access and examination in paragraphs A and B above for records relating to (1) appeals
under the "Disputes" clause of this contract, (2) litigation or settlement of claims arising from the
performance of this contract, or (3) costs and expenses of this contract to which HND, HUD, or Comptroller
General or any of their duly authorized representatives has taken exception shall continue until disposition of
such appeals, litigation, claims, or exceptions.
22. Labor Standards - Davis-Bacon and Related Acts.
If the total amount of this contract exceeds $2,000, the Federal labor standards set forth in the clause below shall
apply to the construction work to be performed under the contract, except if the construction work has been
determined to be "Non-routine Maintenance" subject to the terms of that clause of this contract.
23. Minimum Wages.
A. All laborers and mechanics employed or working upon the site of the work (or, under the United States
Housing Act of 1937 or under the Housing Act of 1949, in the construction or development of the project) will
be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on
any account (except such payroll deductions as are permitted by regulations issued by the Secretary of
Labor under the Copeland Act (29 CFR Part 3)), the full amount of wages and bona fide fringe btmeflts (or
cash equivalents thereof) due at time of payment computed at rates not less than those contained in the
wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of
any contractual relationship which may be alleged to exist between the Contractor and such laborers and
mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under Section
1 (b) (2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such
laborers or mechanics, subject to the provisions of 29 CFR 5.5(a)(1)Ov); also, regular contributions made or
costs incurred for more than a weekly period (but not less often than quarter1y) under plans, funds, or
programs, which cover the regular weekly period, are deemed to be constructively made or incurred during
such weekly period. Such laborers and mechanics shall be paid not less than the appropriate wage rate and
fringe benefits in the wage determination for the classification of work actually performed, without regard to
skill, except as provided in 29 CFR Part 5.5(a)(4). Laborers or mechanics performing work in more than one
classification may be compensated at the rate specified for each classification for the time actually worked
therein; provided, that the employer's payroll records accurately set forth the time spent in each classification
in which work is performed. The wage determination (including any additional classification and wage fates
conformed under 29 CFR 5.5(a)(1)(ii) and the Davis-Bacon poster (WH-1321) shall be posted at all times by
the Contractor and its subcontractors at the site 01' the work in a prominent and accessible place where it can
be easily seen by the workers.
B. Any class of laborers or mechanics which is not listed in the wage determination and which is to be
employed under the contract shall be classified in conformance with the wage determination. HUD shall
approve an additional classification and wage rate and fringe benefits thefefor only when all the following
criteria have been met:
(1.) The work to be performed by the classification request~d is not performed by a classification in the
wage determination;
(2.) The classification is utilized in the area by the construction industry; and
(3.) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to
the wage rates contained in the wage determination.
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If the Contractor and the laborers and mechanics to be employed in the classification (if known), or their
representatives, and HUD or its designee agree on the classification and wage rate (including the amount
designated for fringe benefits where appropriate), a report of the action taken shall be sent by HUD or its
designee to the Administrator of the Wage and Hour Division, Employee standards Administration, U.S.
Department of Labor, Washington, DC 20210. The Administrator, or an authorized representative, will
approve, modify,ordisapprove every additional classification action within 30 days of receipt and so advise
HUD or its designee or will notify HUD or its designee within the 3D-day. period that additional time is
necessary .
In the event the Contractor, the laborers or mechanics to be employed in the classification or their
'representatives, and HUD or its designee do not agree on the proposed classification and wage rate
(including the amount designated for fringe benefits, where appropriate), HUD or its designee shall refer the
questions, including the views of all interested parties and the recommendation of HUD or its designee, to
the Administrator of the Wage and Hour Division for determination. The Administrator, or an authorized
representative, will issue a determination within 30 days of receipt and so advise HUD or its designee or will
notify HUD or its designee within the 30-clay period. that additional time.is necessary.
The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs (b)(2)(ii)
or (iii) of this clause shall be paid to all workers performing work in the classification under this contract from
the first day on which work is performed in the classification.
Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a
fringe benefit which is not expressed as an hourly rate, the Contractor shall either pay the benefit as stated in
the wage determination or shall pay another bona fide fringe benefit or an hour1y cash equivalent thereof.
If the Contractor does not make payments to a trustee or other third person, the Contractor may consider as
part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing
bona fide fringe benefits under a plan or program; provided, that the Secretary of Labor has found, upon the
written request of the Contractor, that the applicable standards of the Davis-Bacon Act have been met. The
Secretary of Labor may require the Contractor to set aside in a separate account assets for the meeting of
obligations under the plan or program.
Withholding of funds. HUD or its designee shall, upon its own action or upon written request of an authorized
representative of the Department of Labor, withhold or cause to be withheld from the Contractor under this
contract or any other Federal contract with the same prime Contractor, or any other Federally-assisted
contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime Contractor,
so much of the accrued payments or advances as may be considered necessary to pay laborers and
mechanics, including apprentices, trainees, and helpers, employed by the Contractor or any subcontractor
the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic,
including any apprentice, trainee, or helper, employed or working on the site of the work (or, under the United
States Housing Act of 1937 or under the Housing Act of 1949, in the construction or development of the
project), all or part of the wages required by the contract, HUD or its designee may, after written notice to the
Contractor, take such action as necessary to cause the suspension of any further payment, advance, or
guarantee of funds until such violations have ceased. HUD or its designee may, after written notice to the
Contractor, disburse such amounts withheld for and on account of the Contractor or subcontractor to the
respective employees to whom they are due. The Comptroller General shall make such disbursements in the
case of direct Davis-Bacon Act contracts.
D.
E.
f.
G.
H.
Payrolls and basic records.
A. Payrolls and basic records relating thereto shall be maintained by the Contractor during the course of the"
work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of
the work (or, under the United States Housing Act of 1937 or under the Housing Act of 1949, in the
construction or development of the project). Such records shall contain the name, address, and social
security number of each such worker, his or her correct classification, hourly rates of wages paid Oncluding
rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the
types described in section 1 (b) (2) (B) of the Davis-Bacon Act), daily and weekly number of hours worked,
Page 27 of 31
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
deductions made, and actual wages paid. Whenever the Secretary of Labor has found, under 29 CFR
5.5(a)(1)(iv), that the wages of any laborer or mechanic indude the amount of costs reasonably anticipated in
providing benefrts under a plan or program described in section 1 (b)(2)(B) of the Davis-Bacon Act, the
Contractor shall maintain records which show that the commitment to provide such benefrts is enforceable,
that the plan or program is financially responsible, and that the plan or program has been communicated in
writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost
incurred in providing such benefrts. Contractors employing apprentices or trainees under approved programs
shall maintain written evidence of the registration of apprenticeship programs and. certification of trainee
programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the
applicable programs.
B. The Contractor shall submit weekly for each week in which any contract work is performed a copy of all
payrolls to HND for transmission to HUD or its designee. The payrolls submitted shall set out accurately and
completely all of the information'required to be maintained under subparagraph C (1) of this clause. This
information may be submitted in any form desired. Optional Form WH-347 (Federal Stock Number 029-005-
00014-1) is available for this purpose and may be purchased from the Superintendent of Documents, U.S.
Government Printing Office, Washington, DC. 20402. The prime Contractor is responsible for the submission
of copies of payrolls by all subcontractors.
C. Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the Contractor or
subcontractor or his or her agent who pays or supervises the payment of the persons employed under the
contract and shall certify the following:
(1.) That the payroll for the payroll period contains the information required to be maintained under
paragraph C of this clause arid that such information is correct and complete;
(2.) That each laborer or mechanic Oncluding each helper, apprentice, and trainee) employed on the
contract during the payroll period has been paid the full weekly wages earned, without rebate, either
directly or indirectly, and that no deductions have been made either directly or indirectly from the full
wages earned, other than permissible deductions as set forth in 29 CFR Part 3; and
(3.) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe
benefrts or cash equivalents for the classification of work performed, as specified in the applicable
wage determination incorporated into the contract.
D. The weekly submission of a properly executed certification set forth on the reverse side of Optional Form
WH-347 shall satisfy the requirements for submission of the "Statement of Compliance" required by
subparagraph C of this clause.
E. The falsification of any of the above certifications may subject the Contractor or subcontractor to civil or
criminal prosecution under Section 1001 of Title 18 and Section 3729 of Title 31 of the United States Code.
F. The Contractor or subcontractor shall make the records required under subparagraph 0 available for
. inspection, copying, or transcription by authorized representatives of HUD or its designee, HND, or the
Department of Labor and shall permit such representatives to interview employees during working hours on
the job. If the Contractor or subcontractor fails to submit the required records or to make them available,
HUD or its designee may, after written notice to the Contractor, take such action as may be necessary to
cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit
the required records upon request or to make such records available may be grounds for debarment action
pursuant to 29 CFR 5.12.
G. Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they
performed when they are employed pursuant to and individually registered in a bona fide apprenticeship
program registered with the U.S. Department of Labor, Employment and Training Administration, Bureau of
Apprenticeship and Training, or with a State Apprenticeship Agency recognized by the Bureau, or if a person
is employed in his or her first 90 days of probationary employment as an apprentice in such an
apprenticeship program, who is not individually registered in the program, but who has been certified by the
Bureau of Apprenticeship and Training or a State Apprenticeship Agency (where appropriate) to b.e eligible
for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job
Page 28 of 31
HNO Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
site in any craft classification shall not be greater than the ratio permitted to the Contractor as to the entire
work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is
not registered or otherwise employed as stated in this paragraph, shall be paid not less than the applicable
wage rate on the wage determination for the classification of work actually performed. In. addition, any
apprentice performing work on the job site in excess of the ratio permitted under the registered program shall
be paid not less than the applicable wage rate on the wage determination for the work actually performed.
Where a contractor is performing construction on a project in a locality other than that in which its program is
registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in
the Contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at
not less than the rate specified in the registered program for the apprentice's level of progress, expressed as
a percentage of the journeyman hourly rate specified in the applicable wage determination. Apprentices shall
be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship
program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on
the wage determination for the applicable classification. If the Administrator of the Wage and Hour Division
determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid
in accordance with that deterniination. In the event the Bureau of Apprenticeship and Training, or a State
Apprenticeship Agency recognized by the Bureau, withdraws approval of an apprenticeship program, the
Contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for
the work performed until an acceptable program is approved.
H. Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the
predetermined rate for the work performed unless they are employed pursuant to and individually registered
in a program which has received prior approval, evidenced by formal certification by the U.S. Department of
Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not
be greater than permitted under the plan approved by the Employment and. Training Administration. Every
trainee must be paid at not less than the rate specified in the approved program for the trainee's level of
progress, expressed as a percentage of the joumeyman hourly rate specified in the applicable wage
determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee
program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of
fringe benefits listed in the wage determination unless the Administrator of the Wage and Hour Division
determines that there is an apprenticeship program associated with the corresponding joumeyman wage rate
in the wage determination which provides for less than full fringe benefits for apprentices. Any employee
listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the
Employment and Training Administration shall be paid not less than the applicable wage rate in the wage
determination for the classification of work actually performed. In addition, any trainee performing work on
the job site in excess of the ratio permitted under the registered program shall be paid not less than the
applicable wage rate in the wage determination for the work actually performed. In the event the Employment
and Training Administration withdraws approval of a training program, the Contractor will no longer be
permitted to utilize trainees at less than the applicable predetermined rate for the work. performed until an
acceptable program is approved.
I. Equal employment opportunity. -The utilization of apprentices, trainees, and journeymen under this clause
shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as
amended, and 29 CFR Part 30.
J. Compliance with Copeland Act requirements. The Contractor shall comply with the requirements of 29 CFR
Part 3, which are hereby incorporated by reference in this contract.
K. Contract termination; debarment. A breach of this contract clause may be grounds for termination of the
contract and for debarment as a Contractor and a subcontractor as provided in 29 CFR 5.12.
L. Compliance with Davis-Bacon and related Act requirements. All rulings and interpretations of the Davis-
Bacon and related Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by reference in this
contract.
Page 29 of 31
HND Form 402
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
.GENERAL CONDITIONS
Project #:
CDBG-02033
I~
\ \
M. Disputes concerning labor stand~rds. Disputes arising out of the labor standards provisions of this clause
shall not be subject to the general dispute clause of this contract. - Such disputes shall be resolved in
accordance with the procedures of the Department of Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes
within the meaning of this clause include disputes between the Contractor (and any of its subcontractors)
and HND, HUD, the U.S. Department of Labor, or the employees or their representatives.
25. Certification of eligibility.
A. By entering into this contract, the Contractor certifies that neither it (nor he or she) nor any person or firm
who has an interest in the Contractor's firm is a person or firm ineligible to be awarded contracts by the
Unit~d States Government by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5. 12(a)(1).
B~ No part of this contract shall be subcontracted to any person or firm ineligible to be awarded contracts by the
United States Government by virtue of section 3(a) ofthe Davis-Bacon Act or 29 CFR 5.12(a)(1).
C. The penalty for making false statements is prescribed in the U. S. Criminal Code, 18 U.S.C. 1001.
(-"J
26. Contract Work Hours and Safety Standards Aet.
As used in this paragraph, the terms "laborersD and "mechanicsD include watchmen and guards.
A. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which
may require or involve the employment of laborers or mechanics, including watchmen and guards, shall
require or permit any such laborer or mechanic in any workweek in which the individual is employed on such
work to work in excess of 40 hours in such workweek unless such labo~r or mechanic receives
compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in
excess of 40 hours in such workweek.
B. Violation; liability for unpaid wages: liquidated damages. In the event of any violation of the provisions
set forth in subparagraph J (1) of this clause, the Contractor and any subcontractor responsible therefor shall
be liable for the unpaid wages. In addition, such Contractor and subcontractor shall be liable to the United
States (in the case of work done under contract for the District of Columbia or a territory, to such District or to
such tenitory), for liquidated damages. Such liquidated damages shall be computed with respect to each
individual laborer or mechanic Oncluding watchmen and guards) employed in violation of the provisions set
forth in subparagraph J (1) of thisc/ause, in the sum of $10 for each calendar day on which such individual
was required or permitted to work in excess of the standard workweek of 40 hours without payment of the
overtime wages required by provisions set forth in subparagraph J (1) of this clause.
C. Withholding for unpaid wages and liquidated damages. HUD or its designee shall upon its own action or
upon written request of an authorized representative of the Department of Labor withhold or cause to be
withheld, from any moneys payable on account of work performed by the Contractor or subcontractor under
any such contract or any Federal contract with thl3 same prime Contractor, or any other Federally-assisted
contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime
Contractor such sums as may be deteimined to be necessary to satisfy any liabilities of such Contractor or
subcontractor for unpaid wages and liquidated damages as provided in the provisions set forth in
subparagraph J (2) of this clause.
27. Subcontracts. The Contractor or subcontractor shall insert in any subcontracts all the provisions contained in this
clause, and such other clauses as HUD or its designee may by appropriate instructions require, and also a clause
requiring the subcontractors to include these provisions in any lower tier subcontracts. The prime Contractor shall
be responsible for the compliance by any subcontractor or lower tier subcontractor with all these provisions.
28. Labor Standards - Non-routine Maintenance. Not applicable.
Page 30 of 31
HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-02033
29. Non-Federal Prevailing Wage Rates.
A. Any prevailing wage. rate (including basic hourly rate and any fringe benefits), determined under State law to
be prevailing, with respect to any employee il'\ any' trade or position employed under the contract, is
inapplicable to the contract and shall not be enforced againSt the Contractor or any subcontractor, with
respect to employees engaged under the contract whenever either ofthe following occurs:
(1.) Such non-Federal prevailing wage rate exceeds:
(a) the applicable wage rate determined by the Secretary of Labor pursuant to the Davis-Bacon Act
(40 U.S.C. 276a et seq.) to be prevailing in the locality with respect to such trade;
(b) an applicable apprentice wage rate based thereon specified in an apprenticeship program
registered with the Department of Labor or a DOL-recognized State Apprenticeship Agency;
(c) an applicable trainee wage rate based thereon specified in ,a DOL-certified trainee program.
B. Such non-Federal prevailing wage rate, exclusive of any fringe benefits, exceeds the applicable wage rate
determined by the Secretary of HUD to be prevailing in the locality with' respect to such trade or position.
Page 31 of 31
_I HND Form 403
/,-, (Rev. 06/03)
\ 1
CONTRACT DOCUMENTS -- CONSTRUCTION
SUPPLEMENTAL CONDITIONS
Project #:
CDBG-02033
(,)
1. Approved Equal:
Whenever a product. is defined in this invitation by trade name and catalogue number of a
manufacturer or contractor, the term "or approved equal", if not inserted therewith shall be implied.
Any reference to a particular manufacturer1s product either by trade name or by limited description
is solely for the purpose of more clearly indicating the minimum standard of quality desired, except
where a "no substitute" is requested. When a "no substitute" is requested. the housing authority
will consider bids for the referenced product only. The term "or approved equal" is defined as
meaning any other make which, in the sole opinion of HND, is of such character, quality and
performance equivalence as to meet the standard of quality of products specified for which it is to
be used equally as well as that specified. The bidder quoting on a product other than the
referenced product shall furnish complete identification on the bid form of the product he is
offering by trade name, brand and/or model number. The bidder shall also furnish with his/her bid,
descriptive literature and data with re~pect to the substitute product he proposes to furnish.
Bidders offering a substitute shall- also indicate any known specification deviations from the
referenced product.
2. Delivery:
All materials and products shall. be .delivered F.O.B. Destination with any delivered duty paid
(DDP). The contractor agrees to bear the risk of loss, injury or destruction of products ordered
which occur prior to receipt by the Owner and acceptance by HND. Such loss, injury or destruction
shall not release contractor from any contractual obligations. All products must be delivered within
the time period specified oil the order. Time is of the essence and, in addition to any other
remedies contained in this invitation for bid, the order is subject to termination for failure to deliver
as specified. In the event of termination, HND shall have the right to purchase in the open market
a corresponding quantity of the products and the contractor shall be responsible for any excess
cost to the Owner and HND.
( 1
" /
3. Inspection and Rejection:
No product received by HND shall be deemed accepted until HND has had a reasonable
opportunity to in~pect said product. Any product, which is discovered to be defective or fails to
conform to the specifications may be rejected upon initial inspection or at any later time if the
defects contained. in the products or the noncompliance with the specifications were not
reasonably ascertainable upon the initial inspection. The decision of HND shall be final. It shall
. thereupon become the duty of the contractor to remove rejected products from the premises
without expense to HND within fifteen (15) days notification. Rejected products left longer than
fjfteen (15) days will be regarded as abandoned, and HND shall have the right to dispose of them
as its own property and shall retain that portion of the proceeds of any sale which represents HND
costs and expenses in regard to the storage and sale of the products. Upon notice of rejection, the
contractor shall immediately replace all such rejected products with others conforming to the
specifications and which are not defective. If the contractor fails, neglects. or refuses to do so,
HND shall then have the right to purchase in the open market a corresponding quantity of such
products, and deduct from any monies due or that may thereafter become due to the contractor,
the djfference between the price stated in the contract or purchase order and the actual cost
thereof to HND.
Page 1 of 3
l HND Form 403
/' .", (Rev. 06/03)
\ )
CONTRACT DOCUMENTS -- CONSTRUCTION
SUPPLEMENTAL CONDITIONS
Project #:
CDBG-02033
C. Nothing contained in the contract shall create any contractual relation between any
subcontractor and HND.
5. Withholding for damages. HND may withhold, or cause to be withheld, from any monies payable
for acceptable work performed by the contractor or subcontractor, damages caused by the
contractor or subcontractor, or other claims against the contractor or subcontract such sums as .
may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor.
(-)6.
Hold Harmless. It is understood and agreed that contractor shall be deemed and considered an
independent contractor in respect to the work covered by this Agreement, and shall assume all
risk and responsibility for casualties of every description in connection with the work which can be
attributed either directly or indirectly to the contractor. Contractor itself, its successors, assigns,
heir, executors and administrators, agrees to indemnify, defend and save harmless the Owner and
HND, all its officers and subordinates:
A. from all suits and actions of every nature brought against HND or any of them for or on
account of any damage or loss sustained by HND, and does agree to pay any and all such
damages iqcluding costs of litigation and counsel fees whether defended by HND or
contractor; and
B. if the contractor is required to enter premises owned, leased, occupied by or under the control
of the Owner during the performance of this contract, the contractor shall indemnify and hold
harmless both the Owner and HND, its officers and employees, from any loss, cost, damage
expense or liability by reason of property damage, or personal injury, including death, of
whatsoever nature or kind arising out of as a result of such performance, whether arising out of
actions of the contractor or any of its employees, subcontractor, and lower tier subcontractors.
It is not the intention of this contract or anything herein provided to confer a third party
beneficiary right or action upon any person whatsoever and nothing herein before or herein
after set forth shall be construed so as to confer upon any person other than the Owner and
HND a right of action either under this contractor or in any manner whatsoever.
('1
Page 2 of 3
(-
i
HND Form 403
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
SUPPLEMENTAL CONDITIONS
Project #:
CDBG-02033
7. Taxes, Industrial Laws and Benefits. In all matters relating to this contract, the contractor shall
be acting as an independent contractor. Neither the contractor nor any of the persons furnishing
materials or performing work or services which are. required by this contract are employees of
HND within the meaning of or the application of any federal, or state unemployment .insurance
law, or other social security, or any workmen's compensation, industrial accident law, or other
industrial or labor laws. At its own expense, the contractor shall comply with such laws and.
assume all obligations imposed by anyone or more of such laws with respect to this contract. In
addition, contractor shall be liable for the payment of all federal, state and local taxes, and any
special assessments.
8. No Waiver of Conditions. Failure of HND to insist on strict performance shall not constitute a
waiver of any of the provisions ofthis contract or waiver of any default of the contractor.
9. Severability. If any provisi9n of this contract, or any application thereof to any person or
circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this
contract which can be given effect without the invalid provisions or appliQation, and to this end the
provisions. of this contract are severable.
10. Architect.. Architectural and Engineering services for this project will be provided by the Augusta-
Richmond COlJnty Public Works Department.
C~ \ 1. Special Hazards. The Contractor and his Subcontractor's Liability and Property Damage
Insurance shall provide adequate protection against the following special hazards:
A. work within the right-of-ways of the Augusta-Richmond County Road System.
B. work within the easements granted by property owners in connection with the construction of
the project.
C. work in close proximity to existing water lines, telephone lines, gas lines, other utilities and
private structures contiguous to the job site.
(
, I
Page 3 of 3
HND Form 404
,/" ". (Rev. 06/03)
!
CONTRACT DOCUMENTS -- CONSTRUCTION
ADDITIONAL SUPPLEMENTAL CONDITIONS
Project #:
CDBG-02033
(. /
1. Employment, Training, and Contracting Opportunities for Low-Income Persons, Section 3
of the Housing and Urban Development Act of 1968.
The work to be performed under. this contract is subject to the requirements of ~ection 3 of the
Housing and Urban Development Act of 1968 (12 U:S.C. 1701u) (Section 3). The purpose of
Section 3 is to ensure that employment and other econolTlic opportunities generated by HUD-
assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low-
and very low-income persons, particularly persons who are recipients of HUD assistance for
housing.
2. Employment Opportunities.Generated By'Section 3 Covered Assistance.
All employment opportunities generated by the expenditure of Section 3 covered public and Indian
housing assistance (Le., operating assistance, development assistance and modernization
assistance, as described in Section 135.3(a)(1)). With respect to Section 3 covered housing and
community development assistance, this term means all employment opportunities arising in
connection with Section 3 covered projects (as described in Section 135.3(a)(2)), including
management and administrative jobs connected with the Section 3 covered project. Management
and administrative jobs include architectural, engineering or related professional services required
to prepare plans, drawings, specifications, or work write-ups; and jobs directly related to
administrative support of these activities, e.g., construction manager, relocation specialist, payroll
C ') clerk, etc.
3. Definitions:
A. Section 3 resident means:
(1) A public housing resident; or .
(2) An individual who resides in the metropolitan area or non-metropolitan county in which the
Section 3 covered assistance is expended, and who is:
(a) A low-income person, as this term is defined in Section 3(b)(2) of the 1937 Act (42
U.S.C. 1437a(b)(2)). Section 3(b)(2) of the 1937 Act defines this term to mean
. families (including single persons) whose incomes do not exceed 80% of the median
income for the area, as determined by. the Secretary, with adjustments for smaller
and larger families, except that the Secretary may establish income ceilings higher or
lower than 80% of the median for the area on .the basis of the Secretary's findings
that such variations are necessary because of prevailing levels of construction costs
or unusually ~igh or low-income families; or
(b) A very low-income person, as this term is defined in Section 3(b)(2) of the 1937 Act
(42 U,S.C. 1437a(b)(2)). Section 3(b)(2) of the 1937 Act (42 U.S.C. 1437a(b)(2))
defines this term to mean families (including single persons) whose incomes do not
exceed 50% of the median family income for the area, as determined by the
Secretary with adjustments for smaller and larger families, except that the Secretary
may establish income ceilings higher or lower than 50% of the median for the area on
the basis of the Secretary's findings that such variations are necessary because of
unusually high or low family incomes.
Page 1 of 5
HND Form 404
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
ADDITIONAL SUPPLEMENTAL CONDITIONS
Project #:
CDBG-02033
(c) A person seeking the training and employment preference provided by Section 3
bears the responsibility of providing evidence, if requested, that he/she is eligible for
the preference. Section 8 assistance means assistance provided under Section 8 of
the 1937 Act (42 U.S.C: 1437f) pursuant to 24 CFR part 882, subpart G.
B. Section 3 business concern means a business concern, as defined in this Section:
(1) That is 51 percent or more owned by Section 3 residents; or
(2) Whose permanent, full-time employees include persons, at least 30 percent of whom are
currently Section 3 residents, or within three years of the date of first employment with the
business concern were Section 3 residents; or
(3) That provides evidence of a commitment to subcontract in excess of 25 percent of the
dollar award of all subcontracts to be awarded to business concerns that meet the
qualifications set forth in paragraphs (1) or (2) in this definition of "Section 3 business
concern."
C. Subcontractor means any entity (other than a person who is an employee of the contractor)
which has a contract with a contractor to undertake a portion of the contractor's obligation for
the performance of work. generated by the expenditure of Section 3 covered assistance, or
arising in connection with a Section 3 covered project.
D. Section 3 clause means the contract provisions set forth in Sec. 135.38.
E. Section 3 covered activity means any activity that is funded by Section 3 covered assistance
public and Indian housing assistance.
4. Responsibilities of the Augusta-Richmond County Housing & Neighborhood Development
Department (HND).
HND has the responsibility t6 comply with Section 3 in its own operations, and ensure compliance
in the operations of its contractorsand subcontractors. This responsibility includes but may not be
necessarily limited to:
A. Implementing procedures designed to notify Section 3 residents about training and
employment opportunities generated by Section 3 covered assistance and Section 3 business
concerns about contracting opportunities generated by Section 3 covered assistance;
B. Notifying potential contractors - for Section 3 covered projects of the requirements of this
part, and incorporating the Section 3 clause in all solicitations and contracts;
C. Facilitating the training and employment. of Section 3 residents and the award of contracts
to Section 3 business concerns by undertaking activities to reach the goals set forth in Section
135.30;
D. Assisting in obtaining the compliance of contractors and subcontractors with the requirements
of this part, and refraining from entering into any contract with any contractor where the
recipient has notice or knowledge that the contractor has been found in violation of the
regulations in 24 CFR part 135; and
Page 2 of 5
HND Form 404
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
ADDITIONAL SUPPLEMENTAL CONDITIONS
Project #:
CDBG-02033
("
E. Documenting actions taken to comply with the requirements of this part, the results of actions
taken and impediments, if any.
C)
5. Employment and Contracting with Residents, Resident-owned Businesses, Small and
Other Businesses.
A. General. HND strongly. supports a policy of contracting and providing employment
opportunities with residents and resident-owned businesses. Accordingly, agencies are
strongly encouraged to contract with. residents and resident-owned businesses whenever
. possible.
B. Section 3 of the Hue Act ()f 1968.
(1) This law requires that HND make an effort to ensure that individuals or firms located in or
owned in substantial part by persons residing in the area of a project are used when
possible. The regulations describing this program are in 24 CFR Part 135 and the contract
form includes a clause. implementing this requirement.
(2) Employment and training opportunities for pre-apprentices, apprentices and other training
programs for residents will assist HND in meeting resident employment, training, and local
contracting objectives under Section 3. Further guidance is provided in Federal Register
Notice, dated October 6, 1992 and HUD Notice 92-01-SL (See Appendix 32).
(3) HUD Handbook 8023.1 ,. Implementing Section 3 of the Housing and Urban Development
Act of 1966 provides guidance regarding compliance with Section 3. Some of the important
provisions include but are not limited to the following:
(a) Solicitations, regardless of the method, must advise prospective contractors of the
Section 3 requirements.
(b) The Section 3 contract clause must ~e included in all covered contracts.
(c) HND and its contractors must make a good faith effort to provide, to the greatest
extent feasible, training 'and employment to lower income residents of the unit of local
government in connection with the work on an assisted project. In filling vacancies,
HND and its contractors may prominently post notices at the project site and in the
HND Office and may contact resident councils and resident management
corporations, in addition to their other recruitment efforts, to meet the requirements of
Section 3.
(d) HND and its contractors must make a good faith effort to award contracts, to the
greatest extent feasible, to businesses located in or owned in substantial part by
persons residing in Augusta-Richmond County. In meeting this requirement HND
should consider use of the alternative procurement procedures 'at 24 CFR Part 963.'
See paragraph 6 below.
(e) Contractors must make a good faith effort to award subcontracts to businesses
located in Augusta-Richmond County or substantially owned by persons residing in
Augusta-Richmond County.
(
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Page 3 of 5
(,
HND Form 404
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
ADDITIONAL SUPPLEMENTAL CONDITIONS
Project #:
CDBG-02033
6. Resident-Owned Business.
A. HUD issued a final rule at 24 CFR Part 963 which allows HND to use an alternative
procurement process when contracting with businesses owned in substantial part by residents
(resident-owned businesses) for public housing services, supplies, or construction. As stated
in paragraph 5, HUD strongly encourages HND to contract with resident businesses to the
maximum extent feasible. This has been a proven strategy for moving low-income persons out
of poverty and dependency. The alternative procurement process is based on the established
procurement procedures and requirements set forth in HUD regulations at 24 CFR 85.36, but
limits solicitation to resident-owned businesses. The purpose of this rule is to enhance the
economic opportunities available to residents by facilitating the award of HND contracts to
resident-owned businesses that are capable of performing successfully under a proposed HND
contract at a reasonable price.
B. The alternative procurement process under 24 CFR 963 is as follows:
(1) HND prepares an independent cost estimate for the procurement.
(2) HND selects the appropriate method of procurement (small purchase, sealed bidding,
competitive proposals, or noncompetitive proposals).
(3) HND solicits a quotation or offer from one or more resident-owned business.
(4) HND receives bids from one or more resident-owned business and ensures that:
(a) the bidders have submitted the required certification regarding previous contracts
received under the alternative procurement process; and
(b) the total amount of such previ6us contracts is less than $500,000.
(c) HND performs a cost or price analysis of the bids received and determines the price
that would normally be paid for comparable supplies, services, or construction in the
project area. . ,
(5) HND awards the contract to the most advantageous bidder, consistent with the evaluation
factors stated in the solicitation, provided that the price does not exceed the independent
. cost estimate and the price that would normally be paid for .comparable supplies, services,
or construction in the project area.
(6) HND documents the procurem~nt file and complies with all other applicable procurement
requirements of 24 CFR 85.36 or 24 CFR 905.
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7. Requirements of Bidders. All contractors must comply with Section 3. A bidder claiming a
Section 3 preference must qualify as a Section 3 Business Concern or a Resident-owned
Business. The bidder must submit the Section 3 Business Concern Certification with the bid to
qualify. Additionally, each contractor must, to the greatest extent feasible, hire a Section 3 eligible
resident when a new hire possibility occurs.
Page 4 of 6
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HND Form 404 CONTRACT DOCUMENTS-CONSTRUCTION Project #:
-- (Rev. 06103) ADDITIONAL SUPPLEMENTAL CONDITIONS CDBG-02033
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8. Eligibility for preference. A Section 3 resident seeking the preference in training and
employment provided by this part shall certify, or submit evidence to the recipient contractor or
subcontractor, if requested, that the person is a Section 3 resident, as defined in Section 135.5.
(An example of evidence of eligibility for the preference is evidence of receipt of public assistance,
or evidence of participation in a public assistance program.)
9. Eligibility for employment. NClthing in this part. shall be construed to require the employment of a
Section 3 resident who does not meet the qualifications of the position to be filled.
10. Preference in the award of Section 3 covered contracts. Preference in the award of Section 3
covered contracts that are awarded under a sealed bid process may be provided as follows:
A. Bids shall be solicited from all businesses (Section 3 business concerns, and non-Section 3
business concerns). An award shall be made to the qualified Section 3 business concern with
the highest priority ranking and with the lowest responsive bid if that bid:
(1 ) Is within the maximum total contract price established in the contracting party's budget for
the specific project for which bids are being taken: and
(2) Is not more than "X" higher than the total bid price of the lowest responsive bid from any
- , responsible bidder. "X" is determined as follows:
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X = Lesser of:
When the lowest responsive bid is less than $100,000. 10% ofthat bid or $9,000.
When the lowest responsive bid is: . .
At least $100,000, but less than $200,000 9% of that bid, or $16,000
At least $200,000, but less than $300,000 8% of that bid, or $21,000
At least $300.000, but less than $400,000 7% of that bid, or $24,000
At least $400,000. but less that $500.000 , 6% of that bid, or $25,000
Al least $500,000, but less than $1 million 5% of that bid, or $40,000
At least $1 million, but less than $2 million 4% of that bid, or $60,000
At least $2 million, but less than $4 million 3% of that bid, or $80,000
At least $4 million, but less than $7 million. 2% of that bid, or $105,000
$7 million or more 1 1/2% .of the lowest responsive bid with no dollar limit
B. If no responsive bid by a Section 3 business concern meets the requirements of paragraph A
(1) of this Section, the contract shall be awarded to a responsible bidder with the lowest
responsive bid.
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Page 5 of 5
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HND Form 406
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
CONTRACTOR REPORTING REQUIREMENTS
Project #:
CDBG-02033
There are a variety of information submittals, form processing and report generation efforts required
to award the contract and throughout the course of administering this contract. This part is intended
to provide the potential bidder with a brief but thorough list of these requirements. You may request
copies of reporting and documentation forms from HND during the bidding process by calling the
HND office at (706) 821-1797. HND reserves the right to revise the reporting and documentation
requirements at any time.
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Pre-Construction Administrative Requirements
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1. Assurance of Completion.
A. The successful bidder shall furnish an assurance of completion prior to the execution of any
contract. The form of assurance of completion, as defined in Instruction to Bidders, is required
to be submitted five (5) days prior to the scheduled pre-construction conference. Bonds must
be obtained from guarantee or surety companies acceptable to the U.S. Government and
authorized to do business in the State of Georgia: Individual sureties will not be considered.
B. Each bond shall clearly state the rate of premium and the total amount of premium charged.
The current power of attorney for the person who signs for the surety company must be
attached to the bond. The effective date of the power of attorney shall not precede the date of
the bond. The effective date of the bond shall be on or after the execution date of the contract.
C. Failure by the successful bidder to obtain the required assurance of completion within the time
specified, or within such extended period as HND may grant based upon reasons determined
adequate by HND, shall render the bidder ineligible for award. HND may then either award the
contract to the next lowest responsible bidder or solicit new bids. HND may retain the ineligible
bidder's bid guarantee.
2. Pre-construction Conference. Prior to the award of a contract under this solicitation and prior to
the start of work, the successful bidder will be required to attend a pre-construction conference
with representatives of the Owner, HND and its architecUengineer, and other interested parties
convened by HND. The conferencewill serve 'to acquaint the participants with the general plan of
the construction operation and all other requirements of the contract (e.g., Section 3, Equal
Employment Opportunity, Labor Standards). HND will provide the successful bidder with the date,
time, and place of the conference. The Contract shall be executed within 3 days following the
completion of the Pre-construction Conference.
3. Certificates of Insurance.
A. In accordance with the General Conditions, shall be submitted five (5) days prior to the
scheduled pre-construction conference. The Owner is to be added as an additionally named
insured to the Contractor's Comprehensive General Liability and Automobile Liability
Coverage. The amount required is not less than $1,000,000.00 per occurrence for General
Liability and $500,000.00 for Automobile Liability.
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Page 1 of 8
HNO Form 406
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
CONTRACTOR REPORTING REQUIREMENTS
Project #:
CDBG-02033
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B. Additionally, before commencing work, the Contractor shall furnish HND with a certificate of
insurance evidencing that Builder's Risk (fire and extended coverage) Insurance on all work in
place and/or materials stored at the building site(s), including foundations and building
equipment, is in force. The Builder's Risk Insurance shall be for the benefit of the Contractor
and the Owner as their interests may appear and each shall be named in the policy or policies
as an insured. The Contractor in installing equipment supplied by the Owner shall carry
insurance on such equipment from "the time the Contractor takes possession thereof until the
Contract work is accepted .by HND. The Builder's Risk Insurance need not be carried on
excavations, piers, footings, or foundations until such time as work on the super-structure is
. started. It need not be carried on landscape work. Policies shall furnish coverage at all times
for the full cash value of all completed construction, as well as materials in place and/or stored
at the site(s), whether or not partial payment has been made by HND. The Contractor may
terminate this insurance on buildings as of the date taken over for occupancy by the Owner.
The Contractor is not required to carry Builder's Risk Insurance for modernization work that
does not involve structural alterations or additions and where the Owner's existing fire and
extended coverage policy can be endorsed to include such work.
C. All insurance shall be carried with companies that are financially responsible and admitted to
do business in the State of Georgia.. If any such insurance is due to expire during the
construction period, the Contractor (including subcontractors) shall not permit the coverage to
lapse and shall furnish evidence .of coverage to HND. All certificates of insurance, as evidence
of coverage, shall provide that no coverage may be canceled or non-renewed by the insurance
company until at least 30 days prior writt~n notice has been given to HND.
D. Certificates of the Contractor's Insurance shall be filed with HND and shall be subject to their
approval for adequacy of protection. These certificates shall contain a provision that coverage
afforded under the policies will not be canceled without a minimum of thirty- (30) days prior
written notice to the Augusta-Richmond County Housing & Neighborhood Development
Department
4. ConstrlJlction Progress Schedule.
A. A Construction Progress Schedule shall be submitted five (5) days. prior to the scheduled pre-
construction conference. The Contractor shall submit for approval three copies of a
practicable schedule showing the order in which the Contractor proposes to perform the work,
and the. dates on which the Contractor contemplates starting and completing the several
salient features of the work (including acquiring labor, materials,. and equipment). The
schedule shall be in the form of a progress chart of suitable scale to indicate appropriately the
percentage of work scheduled for completion by any given date during the period. If the
Contractor fails to submit a schedule within the time prescribed, HNDmay withhold approval of
progress payments or take other remedies under the contract until the Contractor submits the
required schedule.
B. The Contractor shall enter the actual progress on the chart as required by HND, and
immediately deliver three copies of the annotated schedule to HND. If HND, upon the basis of
inspection conducted according to the General Condition clause entitled "Inspection and
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Page 2 of 8
HND Form 406
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
CONTRACTOR REPORTING REQUIREMENTS
.
Project #:
CDBG-02033
Acceptance of Construction," determines that the Contractor is not meeting the approved
schedule, the Contractor shall take steps necessary to improve its progress, including those
. that may be required by HND, without additional cost to the HND. In this circumstance, HND
may require the Contractor to increase the number of shifts, overtime operations, days of work,
and/or the amount of construction plant, and to submit for approval any supplementary
schedule or schedules in chait form as HND deems necessary to demonstrate how the
approved rate of progress will be regained.
C. Failure of the Contractor t6 comply with the requirements of HND under this clause shall be
grounds for a determination by HND that the Contractor is not prosecuting the work with
sufficient diligence to ensure completion within the time specified in the Contract. Upon making
this determination, HND may terminate the Contractor's right to proceed with the work, or any
separable part of it, in accordance with the "Default" clause of this contract.
5. Contractor's own forces work equivalent.
The Contractor shall perform on the site, and with its own forces work equivalent to at least 12%
of the total amount of work to be performed under the contract. Five (5) days prior to the
scheduled pre-construction conference, the Contractor shall submit a certification explaining how
the Contractor will perform at least 12% of the total amount of work.
6. Contractor's obligation to directly superintend the work.
At all times during performance of this contr~ct and until the work is completed and accepted, the
Contractor shall directly superintend the work or assign and have on the work site a competent
superintendent who is satisfactory to HND and has authority to act for the Contractor. Five (5)
days prior to the scheduled pre-construction conference, the Contractor shall submit the following
information for approval by HND:
A. Superintendent's Name
B. Superintendent's Work History
c. Superintendent's Education
7. Schedule of Amounts for Contract Payments. Five (5) days prior to the scheduled pre-
construction conference, the Contractor shall submit a completed and executed Schedule of
Amounts for Contract Payments. This form is only required to be completed once; thereafter, a
copy shall accompany each Pay Request.
Page 3 of 8
HND Form 406
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
CONTRACTOR REPOR1"ING REQUIREMENTS
Project #:
.CDBG-02033
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Construction Phase Reporting Requirements
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The Contractor is advised of the following Reporting and Administrative requirements required
during the course of construction activities:
1. Labor Provision . Requirements:
A. The Contractor is required to submit weekly. Certified Payroll Form WH-347 for the General
Contractor and each Subcontractor.
B. The Contractor is required to post in a conspicuous place the Secretary of Labor's Wage
Poster and Wage Determination.
C. The Contractor is required to report in writing worker disputes that the Contractor cannot
resolve informally.
2. Contract'Progress Payments:
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A. Schedule of Amounts for Contract Payments. A copy of the Schedule of Amounts for
Contract Payments previously approved by HND and/or the HND architect.
B. Pay Request. Required to be completed and submitted for each Pay Request. Only one copy,
with original signatures need be submitted.
3. Change Order.
Required to be completed and submitted with the Pay Request only if. there have been any
approved change orders issued on the project. .
4. Schedule of Materials Stored.
Required to be completed and submitted with Pay Request only if the Contractor wishes to be
paid for inventory purchased prior to that inventory being incorporated into the work. Supporting
invoices must accompany any Stored Materials Request. The HND Rehabilitation Inspector
will inspect the facility where the materials are stored to verify their existence. Each Subcontractor
requesting payment for materials: stored must also complete this form.
5. Summary of Materials Stored.
Required to be completed and submitted with each Pay Request, which has a completed
"Schedule of Materials Stored".
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Page 4 of 8
~
HND Form 406
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
CONTRACTOR REPORTING REQUIREMENTS
Project #:
CDBG-02033
i
6. Construction Progress Schedule.
The Contractor shall enter the actual progress on the chart as. compared to the originally
submitted and approved schedule showing the order in which the Contractor proposes to perform
the work, and the dates on whirfl the Contractor contemplates starting and completing the several
salient features of the work (including acquiring labor, materials, and equipment).
7. Section 3 Summary Report. Economic Opportunities for Low- and Very Low-Income
Persons, form HUD-60002.
The Contractor is required to submit report form HUD-60002, Section 3 Summary Report,
Economic Opportunities for Low- and Very Low-Income Persons, with each request for contract
payments. Please note that this is the same report used by HND to report annual
accomplishments regarding employment and other economic opportunities provided to low- and
very low-income persons under .Section 3 of the Housing and Urban Development Act of 1968.
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8. Shop Drawings and Test Results.
A. "Shop drawings" means drawings, submitted to HND or its architect by the Contractor,
subcontractor, or any lower tier subcontractor, showing in detail (1) the proposed fabrication
and assembly of structural elements and (2) the installation (Le., form, fit, and attachment
details) of materials of equipment. It includes drawings, diagrams, layouts, schematics,
descriptive literature, illustrations, schedules, performance and test data, and similar materials
furnished by the Contractor to explain in detail specific portions of the work required by the
contract. HND may duplicate, use, and disclose in any manner and for any purpose shop
drawings delivered under this contract. .
B. The Contract shall submit shop drawings and test results at least 15 days before the
scheduled installation or work concerning the shop drawing or test results. The Contractor
shall coordinate all such drawings, and review them for accuracy, completeness, and
compliance with other contract requirements and shall indicate its approval thereon as
evidence of such coordination and review. Shop drawings submitted to HND without evidence
of the Contractor's approval may be returned for resubmission.. HND will indicate an approval
or disapproval of the shop drawings and if not approved as submitted shall indicate HND's
reasons therefor. Any work done before such' approval shall be at the Contractor's risk.
Approval by HND shall not relieve the Contractor from responsibility for any errors or
omissions in such drawings, nor from responsibility for complying with the requirements of this
contract.
C. The Contractor shall submit to HND for approval four copies (unless otherwise indicated) of all
shop drawings as called for under the various headings of these specifications. Three sets
(unless otherwise indicated) of all shop drawings, will be retained by HND and one set will be
returned to the Contractor. As required by HND, the Contractor, upon completing the work
under this contract, shall furnish a complete set of all shop drawings as finally approved. These
drawings shall show all changes and revisions made up to the time the work is completed and
accepted.
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Page 5 of 8
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. (Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
CONTRACTOR REPORTING REQUIREMENTS
Project #:
CDBG-02033
D. This clause shall be included in all subcontracts at any tier. It shall be the responsibility of the
Contractor to ensure that all shop drawings prepared by subcontractors are submitted to HND.
E. Failure of the Contractor to comply with the requirements of HND under this clause shall be
grounds for a determination by HND that the Contractor is not in compliance with the Contract.
Upon making this determination, HND may terminate the Contractor's right to proceed with the
work, or any separable part of it, in accordance with the "Default" clause of this contract.
9. As-Built Drawings.
A. '~As-built drawings," as used in this clause, means drawings submitted by the Contractor or
subcontractor at any tier to show the construction of a particular structure or work as actually
completed under the contract. "As-built drawings" shall be synonymous with "Record
drawings." As required by HND, the Contractor shall provide HND accurate information to be
used in the preparation of permanent as-built drawings. For this purpose, the Contractor shall
record on one set of contract drawings all changes from the installations originally indicated,
and record final locations of underground lines by depth from finish grade and by accurate
horizontal. offset distances to permanent surface improvements such as buildings, curbs, or
edges of walks.
B. This clause shall be included in all subcontracts at any tier. It shall be the responsibility of the
Contractor to ensure that all as-built drawings prepared by subcontractors are submitted to
HND.
C. Failure of the Contractor to comply with, the requirements of HND under this clause shall be
. . grounds for a determination by HND that the Contractor is not in compliance with the Contract.
This will result in HND withholding from the Contractor's final payment and/or retention an
amount of money sufficient to gather and/or reproduce the accurate information necessary to
be used in the preparation of permanent as-built drawings.
10. Approval of equipment and materials.
A. The Contractor shall obtain .HND approval of the machinery and mechanical and other
equipment to be incorporated into the work. When requesting approval, the Contractor shall
furnish to HND the name of the manufacturer, the model number, and other information
concerning the performance, capacity, nature, and rating of the machinery and mechanical and
other equipment. When required by this contract or by HND, the Contractor shall also obtain
HND approval of the material or articles, which the Contractor contemplates incorporating into
the work. When requesting approval, the Contractor shall provide full information concerning
the material or articles. Machinery, equipment, material, and articles that do not have the
reQ4ir,ed approval shall be installed or used at the risk of subsequent rejection.
B. When required by the specifications or HND, the Contractor shall submit appropriately marked
samples (and certificates related to them) for approval at the Contractor's expense, with all
shipping charges pre-paid. The Contractor shall label, or otherwise properly mark on the
container, the material or product represented, its place of origin, the name of the producer,
Page 6 of 8
HND form 406
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
CONTRACTOR REPORTING REQUIREMENTS
Project #:
CDBG-02033
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Contract Close-out Reporting Requirements
After the Contractor has completed all the items noted on the HND inspection punch list, the
Contractor may submit closing documents to HND. Closing documents shall consist of the
following:
1. The Contractor shall notify HND, in writing, as to the date when in its opinion all.or a designated
portion of the work will be substantially completed and ready for inspection. If the state of
preparedness is as represented. HND will promptly arrange for the inspection.
2. Final Pay Request marked "FINALII with all associated payment forms as explained above.
3. One original of the executed Final Waiver of Lien for the Contractor for each subcontractor and
all material suppliers.
4. Certificate of Occupancy, if required.
5. Any special warranty or guarantees required by the Technical Specifications. At a minimum. the
I' Contractor is required to provide a one':year workmanship warranty, in accordance with General
Conditions. This warranty may be in the form of a letter on company stationery, signed by an
authorized individual establishing the coverage period and the method of notification for covered
repairs. Other special equipment warranties shall be from the manufacturer.
6. An original completed copy of Contractor's Certificate and Release. This form must be
notarized.
7. An original completed copy of Owners Certificate and Release. This form must be notarized.
8. Accurate and complete information to be used in the preparation of permanent as-built drawings.
For this purpose, the Contractor shall record on one set of contract drawings all changes from the
installations originally indicated, and record final locations of underground lines by depth from
finish grade and by accurate horizontal offset distances to permanent surface improvements such
as buildings, curbs, or edges of walks.
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Page 8 of 8
{~ HND Form 409
..j; (Rev. 11/03)
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CONTRACT DOCUMENTS -- CONSTRUCTION
NOTICE TO PROCEED
Project #:
CDBG-03036
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TO: Turner Mechanical, Incorporated
1347 Atomic Road
N. Augusta, SC 29842
.PROJECT: Henry Brigham Community Center Roof Repair & Replacement
2463 Golden Camp Road
Augusta, GA 30906
PROJECT #:. CDBG-03036
1. YOl! are hereby notified to commence work on the Project shown above, in accordance with
the Construction Contract dated November 7,2003.
2. You may begin work on this,Project on November 24, 2003, but no later than ten (10)
calendar days from that date. Your company will complete all work not later than Forty-five.
(45) consecutive calendar days from the Start Date. The Scheduled Completion Date for this
project is therefore January 9, 2004. .
3. Liquidated damages, as outlined in the contract, will begin on the day after the Scheduled
(~'1 Completion Date, and will continue daily until the. project is actually completed. Authorized
\..,:..) delays that may add additional time to the Scheduled Completion Date will be determined by
.. HND.
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eed is hereby acknowledged by Turner Mechanical,
By:
Title: 'f!!!/FCT /lA I'rNAqE1A-
Date: .lr/21 /O.~
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HND Form 401 CONTRACT DOCUMENTS .- CONSTRUCTION Project #:
(Rev. 06103) FORM OF CONTRACT CDBG-03036
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.'THIS AGREEMENT .made this Seventh day of November in the year 2003. by. and between
Turner Mechanical. Incorporated. a Corporation existing under the laws of the State of South
'Carolina, hereinafter called the "Contractor," and Auausta-Richmond County. herein called the
"Owner. n .
WITNESSETH, that the Contractor and the Owner for the consideration stated herein, mutually agree
as follows:
ARTICLE I
Statement of Work. The Contractor shall furnish all laborl material, equipment, and services and
perform and complete all work required for the construction of Project No. CDBG-03036, in strict
accordance with "Invitation for Bids on Roof Repair and Replacement at Henry H. Brigham
Community Center, IFB# HND-03-IFB-012, dated October 16,2003, and the specifications referred
to herein, which are incorporated herein by reference and made a part hereof.
ARTICLE II
Contract Price. The Augusta-Richmond County Housing & Neighborhood Development Department,
C"'on behalf of the Owner, shall pay the Contractor for the performance of the Contract, in current funds,
.,-=-kubject to additions and deductions as provided in the specifications for completed work meeting the
requirements of the Contract Documents, the sum of:
Forty-Two Thousand Dollars ($42,000.00).
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ARTICLE III
Contractor agrees that time is of the essence in the completion of the work in the time required by this
contract and hereby waives any notice of putting in default for failure to complete on time.
ARTICLE IV
Contract Documents. The contract shall consist of the following component parts:
(a) This Instrument
(b) General Conditions
(c). Special/supplemental Conditions
(d) Technical Specifications
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Page 1 of 2
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HND Form 401 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev, 06103) FORM OF CONTRACT CDBG-03036
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This instrument, together with the other documents enumerated in this ARTICLE IV, which said other
documents are as fully a part of the Contract as if hereto attached or herein repeated, form the
Contract. In the event that any provision of any other component part of this Contract conflicts with
any provision of any other component part, the provision of the. component part first enum,erated in
the ARTICLE IV shall govern, except as otherwise specially stated. The various provisions in the
Addendum shall be construed in the order of the preference of the com'ponent part of the Contract
which each modifies.
IN WITNESS 'WHEREOF, the parties hereto.have caused this Instrument to be executed in four (4)
original counterparts as of the day and year first above written.
AUGUSTA-RICHMOND COUNTY
(Owner)
~ (Signature)
BOB YOUNG
(Print Name)
TURNER MECHANICAL. INCORPORATED
(Contractor)
MAYOR
(Title) ,
.~~re~
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David Turner
(Print Name)
President
, (Title)
Sworn to and subscribed before me this I ~ day of ~~~
in the year 2003.
~~...
NOt"ary Publi . Richmond county. Georgia
lMitv icommIsSton ExPires Jan. 4, 2006
( SEAL)
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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J HND Form 402
(Rev. 06/03)
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1. Definitions.
A. "Architect" means the person or other entity engaged by the Owner to perform architectural, engineering, design,
and other services related to the work as provided for in the contract. When HND uses an engineer to act in this
capacity, the terms "architect" and "engineer" shall be synonymous. The Architect shall serve as a technical
representative of HND and the Owner. The Architect's authority is as set forth elsewhere in this contract.
B. "Contract" means the contract entered into between the Owner and the Contractor. It includes the forms of Bid,
the Bid Bond, the Performance and Payment Bond or Bonds or other assurance of completion, the Certifications,
Representations, and Other Statements of Bidders, these General Conditions of the Construction Contract, the
applicable wage rate determinations from either the U.S. Department of Labor or HUD, and any Supplemental
and Special conditions included in the contract, the Notice to Proceed, the drawings and specifications, and the
work write up. It includes all formal changes to .any of those documents by addendum, change order, or other
modification The Contract, including all referenced documents, constitutes the entire agreement between the
parties. No agent, representative, employee or officer of either HND, the Owner, or the Contractor has authority to
make any statement, agreement or representation, oral or written, in connection with the Contract, which in any
way can be deemed to modify, add to or detract from, or otherwise change or alter its terms and conditions. No
negotiations between the parties, nor any custom or usage, shall be permitted to modify or contradict any of the
terms and conditions of the Contract. No modifications, alterations, changes, or waiver to the Contract or any of
its terms shall be valid. or binding unless accomplished by a written amendment signed by all parties. All such
.amendments will be made using the appropriate HND form.
C. "Contractor" means the person or other .entity entering into the contract with the Owner to perform all of the work
required under the contract. .
D. "Drawings" means the drawings enumerated in the schedule of drawings contained in the Specifications and as
described in the contract clause entitled "Specifications and Drawings for Construction" herein.
E. "HND" means the Augusta-Richmond County Housing and Neighborhood Development Department. HND
provides financial assistance to an eligible Owner, which includes assistance in financing the work to be
performed under this contract. As defined elsewhere in these General Conditions or the contract documents, the
determination of HND is required to authorize changes in the work or for release offunds for payment to the
Contractor. Notwithstanding HND's role, nothing in this contract shall be construed to create any contractual
relationship between the Contractor and HND.
F. "HND Rehabilitation Inspector" means the person or persons delegated the authority by HND to execute,
administer, and/or terminate this contract. The term includes any successor HND Rehabilitation Inspector. HND
shall be deemed an authorized agent ofthe Owner in all dealings with the Contractor.
G. "Owner" is the person or organization identified as such in the Construction Contract. The term owner means the
Owner or his authorized representative. .
H. "Project" means the entire project, whether construction or rehabilitation, the work for which is provided for in
whole or in part under this contract.
I. "Specifications" means the written description of the technical requirements for construction and includes the
criteria and tests for determining wheth~r the requirements are met.
J. 'Testing Laboratory" An independent entity engaged to perform specific inspections or tests of the work, either
at the project site or elsewhere; and to report and, if required, interpret results of those inspections or tests.
2.
Contractor's Responsibility for Work.
A. The Contractor shall furnish all necessary labor, materials, tools, equipment, and transportation necessary
for performance of the work. The Contractor shall also furnish all necessary water, heat, light, and power not
made available to the Contractor by the Owner pursuant to the clause entitled "Availability & Use of Utility
Services."
Page 1 of 31
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A HND Form 402
(Rev. 06/03)
i'.~
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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B. The Contractor shall perform on the site, and with its own organization, work equivalent to at least 12 percent
of the total amount of work to be performed under the order. This percentage mey be reduced by a
supplemental agreement to this order if, during performance of the work, the Contractor requests a reduction
and HND determines that the reduction would be to the advantage of HND and the Owner.
. .
C. At all times during performance of this contract and until the work is completed and accepted, the Contractor
shall directly superintend the work or assign and have on the work site a competent superintendent who is
satisfactory to HND and has authority to act for the Contractor.
D. The Contractor shall be responsible for all damages to persons or property that occur as a result of his fault
or negligence, and shall take proper safety and health precautions to protect the work, the workers, the
public, and the property of others. The Contractor shall hold and save the Owner and HND, its officers, and
agents, free and harmless from liability of ~ny nature occasioned by the Contractor's perfonnance. The
Contractor shall also be responsible for all materials delivered and work performed until completion and
acceptance of the entire work, except for any completed unit of work which may have been accepted under
the contract.
E. The Contractor shall layout the work from base lines and benchmarks indicated on the drawings and is
responsible for all lines, levels, and measurements of all work executed under the contract. The Contractor
shall verify the figures before laying out the work and will be held responsible for any error resulting from its'
failure to do so.
F. The Contractor shall confine all operations (including storage of materials) on the Owner's premises to areas
authorized or approved by HND.
G. The Contractor shall at all times keep the work area, including storage areas, free from accumulations of
waste materials. After completing the work and before final inspection, the Contractor shall:
(1.) remove from the premises all scaffolding, equipment, tools, and materials (including rejected
materialS) that are not the property of the Owner and all rubbish caused by its work;
(2.) leave the work area in a clean, neat, and orderly condition satisfactory to HND;
(3.) perform all specified tests; and,
(4.) deliver the installation in complete and operating condition.
H. The Contractor's responsibility will terminate when all work has been completed, the final inspection made,
and the work accepted by the HND and the Owner. The Contractor will then be released from further
obligation except as required by the warranties specified elsewhere in the contract.
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3. Architect's Duties, Responsibilities, and Authority.
A. . The Architect for this contract, if any, shall be designated in writing by HND and. the Owner.
B. :The Architect shall serve as HND's technical representative with respect to architectural, engineering, and
design matters related to the work performed under the contract. The Architect, when requested by HND,
. may provide direction on contract performance. Such direction shall be within the scope of the contract and
may not be of a nature which:
(1.) Institutes additional work outside the scope of the contract;
(2.) Constitutes a change as defined in the "Changes. clause of this contract;
(3.) Causes an increase or decrease in the cost of the contract;
(4.) Alters the Construction Progress Schedule; or
(5.) Changes any of the other express terms or conditions of the contract.
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Page 2 of 31
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'~ HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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C. The Architect's duties and responsibilities may include but shall not be limited to:
(1.) Making periodic visits to the work site, and on the basis of on-site inspections, issuing written reports
to HND, which shall include all observed deficiencies. The Architect shall file a copy of the report with
the Contractor's designated representative at the site;
(2.) Making modifications in drawings and technical specifications and assisting HND in the preparation of
change orders and other contract modifications for issuance by HND; .
(3.) Reviewing and making recommendations with respect to:
(4.) the Contractor's construction progress schedules;
(5.) the Contractor's shop and detailed drawings;
(6.) the machinery, mechanical and other equipment and materials or other articles proposed for use by
the Contractor.
(7.) Assisting in inspections, signing Certificates of Completion, and making recommendations regarding
acceptance of work completed under the contract. .
4. Other Contracts:
HND or the Owner may undertake or award other contracts for additional work at or near the site of the work under
this contract. The Contractor shall fully cooperate with the other contractors and shall carefully adapt scheduling
and performing the work under this contract to accommodate the additional work, heeding any direction that may
be provided by HND. The Contractor shall not commit or permit any act that will interfere with the performance of
work by any other contractor. .
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CONTRACT -DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
.-. HND Form 402
(Rev. 06103)
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- I I I;; _ _ - - - - CONSTRUC_TIO~ REQUIREMENTS
2.
1. . Pre-construction Conference and Notice to Proceed.
A. After the Notice of Award has been issued, but prior to the contract execution, the Contractor shall attend a
pre-construction conference with representatives of the Owner, HND, its Architect, and other interested
parties convened by the Owner. The conference will serve to acquaint the participants with the general plan
of the construction operation and all other requirements of the contract. The Owner will provide all parties
with the date, time, and place of the conferenc~.
B. The Contractor shall begin work upon receipt of a written Notice to Proceed from HND. The Contractor shall
not begin work prior to receiving such notice.
Construction Progress Scheduie.
A. The Contractor shall, within three (3) business days after the pre-construction conference or another
period of time determined by HND, prepare and submit to HND three copies of a practicable schedule
showing the order in which the Contractor proposes to perform. the work, and the dates on which the
Contractor contemplates starting and completing the several salient features of the work (including acquiring
labor, materials, and equipment). The schedule shall be in the form of a progress chart of suitable scale to
indicate appropriately the percentage of work scheduled for completion by any given date during the period.
If the Contractor fails to submit a schedule within the time prescribed; HND may withhold approval of
progrel[)s payments or take other remedies under the contract until the Contractor submits the required
schedule.
B. The Contractor shall enter the actual progress on the chart as required by HND, and immediately deliver
three copies of the annotated schedule to HND. If HND determines, upon the basis of inspection conducted
pursuant to the clause entitled "Inspection and Acceptance of Construction", herein that the Contractor is not
meeting the approved schedule, the Contractor shall take steps necessary to improve its progress, including
those that may be required by HND, without additional cost to HND or the Owner. In this circumstance, HND
may require the Contractor to increase the number of shifts, overtime operations, days of work, and/or the
amount of construction plant, and to submit for approval any supplementary schedule or schedules in chart
form as HND deems necessary to demonstrate how the approved rate of progress will be regained.
C. Failure of the Contractor to comply with the requirements of HND under this clause shall be grounds for a
determination by HND that the Contractor is not prosecuting the work with sufficient diligence to ensure
completion within the time specified in the Contract. Upon making this determination, HND may terminate the
Contractor's right to proceed with the work, '.. or any separable part of it, in accordance with the "Default"
clause of this contract.
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3.
Site Investigation and Conditions Affecting the Work.
A. The Contractor acknowledges that he has taken steps reasonably necessary to ascertain the nature and
location of the work, and that he has investigated and satisfied himself as to the general and local conditions
which can affect the work or Its cost, including but not limited to:
(1.) conditions bearing upon transportation, disposal, handling, and storage of materials;
(2.) the availability of labor, water, electric power, and roads;
(3.) uncertainties of weather, river stages, tides, or similar physical conditions at the site;
(4.) the conformation and conditions of the ground; and
(5.) the character of equipment and facilities. needed preliminary to and during work performance.
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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~... HND Form 402
(Rev. 06/03)
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B. The Contractor acknowledges that he is satisfied as to the character, quality, and quantity of surface and
sutr.surface materials or obstacles to be encountered insofar as this information is reasonably ascertainable
from an inspection of the site, including all exploratory work done by HND, as welras from any drawings and
specifications made a part of this contract. Any failure of the Contractor to take the actions described and
acknowledged in this paragraph will not relieve the Contractor from responsibility for estimating properly the
difficulty and cost of successfully performing the work, or from proceeding. to successfully perform the work
without additional expense to HND or the Owner.
C. HND assumes no responsibility for any conclusions or interpretations made by the Contractor based on the
information made available by HND. Nor does HND assume responsibility. for any understanding reached or
representation made conceming conditions that can affect the work by any of its officers or agents before the
execution of this contract, unless that understanding or representation is expressly stated in this contract.
4. Differing Site Conditions.
A. The Contractor shall, within two (2) business days of discovery, and before the conditions are disturbed, give
a written notice to HND and the Architect of:
(1.) subsurface or latent physical conditions at the site which differ from those indicated in this contract; or
(2.) unknown physical conditions at the site, of an unusual. nature, which differ materially from those
ordinarily encountered and generally recognized as inhering in work of the character provided for in
the contract.
B. HND and the Architect shall investigate the site conditions promptly after receiving. the notice. Work shall not
proceed at the affected site, except at the Contractor's risk, until HND has provided written instructions to the
Contractor. If the conditions materially differ and cause an increase or decrease in the Contractor's cost or
the time required for performing any part of the work under this contract, whether or not changed as a result
of the conditions, HND will make an equitable adjustment in the contract price, the delivery schedule, or both
under this clause and the contract modified in writing accordingly.
C. No request by the Contractor for an equitable adjustment to the contract under this clause shall be allowed,
unless the Contractor has given the written notice required; provided, that the time prescribed above for
giving written notice may be extended by HND. .
D. No request by the Contractor for an equitable adjustment to the contract for differing site conditions shall be
allowed if made after final payment under this contract.
5.
Specifications and Drawings for Co~struction.
A. The Contractor shall keep on the work site a copy of the drawings and specifications and at all times give
access to HND and the Architect. Anything mentioned in the specifications and not shown on the drawings,
or shown on the drawings and not mentioned in the specifications, shall be of like effe~ as if shown or
mentioned in both. In case of difference between drawings and specifications, the specifications shall
govern. In case of discrepancy in the figures, in the drawings, or in the specifications, the matter shall be
promptly submitted to the Architect, who will make a determination in writing. Any adjustment by the
Contractor without such a determination shall be at its own risk and expense. The Architect shall furnish from
time to time such detailed drawings and other information as considered necessary, unless otherwise
provided.
B. Where in the specifications or drawings the words "directed", "required", "ordered", "designated",
"prescribed", or like words are used, it shall be understood that the "direction", "requirement", "order",
"designation", or "prescription", of HND is intended. Similarly the words "approved," "acceptable,"
"satisfactory,. or like words shall mean "approved by,. or "acceptable to,. or "satisfactory to" HND, unless
otherwise expressly stated.
Page 5 of 31
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HND Form 402
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
C. Where "as shown, n "as indicated, n "as detailed, n or words of similar import are used, it is understood that the
reference is made to the drawings accompanying this contract unless stated otherwise. The word "provided"
as used herein shall be understood to mean, "provide complete in place", that is "fumished and installed. n
D. .Shop drawings. means drawings, submitted to the Architect by the Contractor, subcontractor, or any lower
tier subcontractor, showing in detail: .
(1.) the proposed fabrication and assembly of structural elements; and
(2.) the installation (i.e., form, fit, and attachment details) of materials of equipment. It includes drawings,
diagrams, layouts, schematics, descriptive literature, illustrations, schedules, performance and test
data, and similar materials furnished by the Contractor to explain in detail specific portions of the work
required by the contract. HNDmay duplicate, use, and disclose in any manner and for any purpose
shop drawings delivered under this contract.
E. The Contractor shall submit to the Architect for approval one reproducible and one opaque copy (unless
otherwise noted) and to HND for record one opaque copy of all shop drawings as called for under the various
headings of these specifications. Deliver the submittal by such method as to assure receipt within two days
of sending. Notify the architect via facsimile on the day the submittal is sent.
F. If this contract requires shop drawings, the Contractorshall coordinate all such drawings, and review. them
for accuracy, completeness, and compliance with other contract requirements and shall indicate its approval
thereon as evidence of such coordination and review. Shop drawings submitted to the Architect without
evidence of the Contractor's approval may be retumed for re-submission. HND and the Architect will Indicate
an approval or disapproval of the shop drawings and if not approved as submitted shall indicate the reasons
therefor. Any work done before such approval shall be at the Contractor's risk. Approval by HND and the
Architect shall not relieve the Contractor from responsibility for any. errors or omissions in such drawings, nor
from responsibility for complying with the requirements of this contract, except with respect to variations
described and approved in accordance with paragraph 9G below.
G. If shop drawings show variations from the contract requirements, the Contractor shall describe such
variations in writing, separate from the drawings, at the time of submission. If the Architect approves any
such variation and HND concurs, HND shall issue an appropriate modification to the contract. If the variation
is minor or does not involve a change in price or in time of performance, however, a modification need not be
issued.
H. It shall be the responsibility of the Contractor to make timely requests of the Architect for such large scale
and full size drawings, color schemes, and other additional information, not already in his possession, which
shall be required in the planning and production of the work. Such requests may be submitted as the need
arises, but each such request shall be filed in ample time to permit appropriate action to betaken by all
parties involved,so as to avoid delay. .
J. The Contractor shall submiUo the Architect for approval four copies (unless otherwise indicated) of all shop
drawings as called for under the various headings of these specifications. One set (unless otherwise
indicated) of all shop drawings will be retained by HND, the Architect, and the Owner, and one set will be
returned to the Contractor. As required by HND, the Contractor, upon completing work under this contract,
shall fumish a complete set of all shop drawings as finally approved. These drawings shall show all changes
and revisions made up to the time the work is completed and accepted.
J. This clause shall be included in all subcontracts at any tier. It shall be the responsibility of the Contractor to
ensure that all shop drawings prepared by subcontractors are submitted to the Architect.
K. The Contractor shall provide with each submittal for approval a certificate attesting that the products or
materials to be supplied are:
(1.) currently and readily available;
(2.) not obsolete or discontinued; and
(3.) not to be discontinued or deleted from the supplier or manufacturers stock within the next calendar
year.
Page 6 of 31
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HND Form 402 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
~ (Rev. 06103) GENERAL CONDITIONS CDBG-03036
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I L. Layouts and Floor Plans provided by HND are diagrammatic only and are intended to illustrate the general
intentions of HND only. They do not show all the work required, exact dimensions, or construction details.
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6. As-Built Drawings.
A. "As-built drawings," as used in thiS clause, means drawings submitted by the Contractor or subcontractor at
any tier to show the construction of a particular structure or work as actually completed under the contract.
"As-built drawings" shall be synonymous with "Record drawings."
B. Within 5 days of notification of substantial completion, the Contractor shall provide the Architect accurate
information to be used in the preparation of permanent as-built drawings. For this purpose, the Contractor
shall record on one set of contract drawings all changes from the installations originally indicated, and record
final locations of underground lines by depth from finish grade and by accurate horizontal offset distances to
permanent surface improvements such as buildings, curbs, or edges of walks. No final payment will be made
to the contractor until the Architect has received accurate information to be used in the preparation of
permanent as-built drawings.
. .
C. This clause shall be included in all subcontracts. It shall be the ~sponsibility of the Contractor to ensure that
all as-built drawings prepared by subcontractors are submitted to the Architect.
7. Material and Workmanship.
A. All equipment, material, and articles fumished under this contract shall be new and of the most suitable
grade for the purpose intended, unless otherwise specifically provided in this contract. References in the
contract to equipment, material, articles, or patented processes by trade name, make, or catalog number,
i shall be regarded as establishing a standard of quality and shall not be construed as limiting competition.
/ The Contractor may use any equipment, material, article, or process that, in the judgment of, and as
approved by HND and the Architect, is equal to that named in the specifications, unless otherwise
specifically provided in this contract.
B. Approval of equipment and materials:
(1.) The Contractor shall obtain HND and Architect approval of the machinery and mechanical and other
equipment to be incorporated into the work. When requesting approval, the Contractor shall fumish to
the Architect the name of the manufacturer, the model number, and other information concerning the
performance, capacity, nature, and rating of the machinery and mechanical and other equipment. ;~:
When required by this contract or by HND, the Contractor shall also obtain HND and Architect '.
approval of the material or articles that the Contractor contemplates incorporating into the work. When
requesting approval, the Contractor shall provide full information concerning the material or articles.
Machinery, equipment, material, and articles that do not have the required approval shall be installed
or used at the risk of subsequent rejection.
(2.) When required by the specifications or HND, the Contractor shall submit appropriately marked
samples (and certificates related to them) for approval at the Contractor's expense, with all shipping
charges pre-paid. The Contractor shall label, or otherwise properly mark on the container, the material
or product represented, its place of origin, the name of the producer, the Contractor's name, and the
identification of the construction project for which the material or product is intended to be used.
(3.) Certificates shall be submitted in triplicate, describing each sample submitted for approval and
certifying that the material, equipment, or accessory complies with contract requirements~ The
certificates shall include the name and brand of the product, name of manufacturer, and the location
where produced.
C. Approval of a sample shall not constitute a waiver of HND or the Owner's right to demand full compliance
with contract requirements. Materials, equipment, and accessories may be rejected for cause even though
samples have been approved.
Page 7 of 31
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HND Form 402
-, (Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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D. Wherever materials are required to comply with recognized standards or specifications, such specifications
shall be accepted as establishing the technical qualities and testing methods, but shall not govern the
number of tests required to be made nor modify other contract requirements. HND may require laboratory
test reports on items submitted for approval or may approve materials on the basis of data submitted in
certificates with samples. Check tests will be made on materials delivered for use only as .frequently as HND
determines necessary to insure compliance of materials with the specifications. The Contractor will assume
all costs of re-testing materials that fail to meet contract requirements and/or testinQmaterials offered in
substitution for those found deficient.
E. After approval, samples will be kept on the job site until completion of work. They may be built into the work
after a substantial quantity of the materials they represent has been built in and accepted.
F. Prohibition against use of lead-based paint. The Contractor shall comply with the prohibition against the use
of lead-based paint contained in the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846) as
implemented by 24 CFR Part 35.
8.
Penn its , Licenses, and Codes.
A. The Contractor shall give all notices and comply with applicable laws, ordinances, codes, rules, and
regulations. Notwithstanding the requirement of the Contractor to comply with the drawings and
specifications in the contract, work shall comply with all applicable codes and regulations as amended by any
waivers. Before beginning the work, the contractor shall examine the drawings and specifications for
compliance with all applicable ordinances and codes bearing on the work and shall immediately report any
discrepancy it may discover to HND and the Architect. Where requirements of the drawings and
specifications fail to comply with such applicable ordinances or codes for the new or replaced work, HND will
adjust the contract by change order pursuant to the clause entitled "Changes" herein to conform to sU,ch
ordinances or codes, unless waivers in writing covering the difference have been granted by proper
authority.
B. The Contractor shall secure and pay for all permits, fees, and licenses necessary for the proper execution
and completion of the work, whether or not covered by the specifications and drawings for the work.
9.
Health, Safety, and Accident Prevention.
A. In performing this contract, the Contractor shall:
. .
(1.) Ensure that no laborer or mechanic shall be required to work in surroundings or under working
conditions which are unsanitary, hazardous, or dangerous to his/her health and/or safety as
determined under construction safety and health standards promulgated by the Secretary .of Labor by
regulation; .
(2.) Protect the lives, health, and safety of other persons;
(3.) Prevent damage to property, materials, supplies, and equipment; and,
(4.) Avoid work interruptions.
B. For these purposes, the Contractor shall:
(1.) Comply with regulations and standards issued by the Secretary of Labor at 29 CFR Part 1926. Failure
to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety
Standards Act (Public Law 91-54,83 Statute 96), 40 U.S.C. 327 et seq.,
(2.) Include the terms of this clause in every subcontract so that such terms will be binding on each
subcontractor.
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HND Form 402
~1 (Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #: .
CDBG-03036
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C. The Contractor shall maintain an accurate record of exposure data on all accidents incident to work
performed under this contract resulting in death, traumatic injury, occupational disease, or damage to
property, materials, supplies, or equipment, and shall report this data in the manner prescribed by 29 CFR
1904.
D. HND shall notify the Contractor of any non-compliance with these requirements and of the corrective action
required. This notice, when delivered to the Contractor or the Contractor's representative at the site of the
work, shall be deemed sufficient notice of the non-compliance and corrective action required. After receiving
the notice, the Contractor shall immediately take corrective action. If the Contractor fails or refuses to take
corrective action promptly, HND may issue an order stopping all or part of the work until satisfactory
corrective action has been taken. The Contractor shall not base any claim or request for equitable
adjustment for additional time or money on any stop order issued under these circumstances.
E. The Contractor shall be responsible for his subcontractors' compliance with the provisions of this clause. The
Contractor shall take such action with respect to any subcontract as HND, the Secretary of Housing and
Urban Development, or the Secretary of Labor shall direct as a means of enforcing such' provisions.
10.
Temporary Heating.
The Contractor shall provide and pay for temporary heating, covering, and enclosures necessary to properly protect
all work and materials against damage by dampness and cold, to dry out the work, and to facilitate the completion
of the work. Any permanent heating equipment used shall be tumed over to the Owner in the condition and at the
time required by the specifications.
Availability and Use of Utility Services.
A. The Owner shall make all reasonably required amounts of utilities available to the Contractor from existing
outlets and supplies, as specified in the contract. Unless otherwise provided in the contract, the amount of
each utility service consumed shall be charged to or paid for by the Contractor at prevailing rates charged to
the Owner. The Contractor shall carefully conserve any utilities fumished without charge.
B. The Contractor, at its expense and ina manner satisfactory to HND, shall install and maintain all necessary
temporary connections and distribution lines, and all meters required to measure the amount of each utility
used for the purpose of determining charges. Before final acceptance of the work. by the HND and the
Owner, the Contractor shall remove all the temporary connections, distribution lines, meters, and associated
paraphernalia.
11.
12.
Protection of Existing Vegetation, Structures, Equipment, Utilities, and Improvements.
A. The Contractor shall preserve and protect all structures, equipment, and vegetation (such as trees, shrubs,
and grass) on or adjacent to the work site, which are not to be removed under this contract, and which do not
unreasonably interfere with the work required under this contract.
B. The Contractor shall only remove trees when specifically authorized to do so, and shall avoid damaging
vegetation that will remain in place. If any limbs or branches of trees are broken during performance of this
contract, or by the careless operation of equipment, or by workmen, the Contractor shall trim those limbs or
branches with a clean cut and paint the cut with a tree-pruning compound as directed by HND.
C. The Contractor shall protect from damage all existing improvements and utilities at or near the work site or
on adjacent property of a third party, the locations of which are made known to or should be known by the
Contractor. Prior to disturbing the ground at the construction site, the Contractor shall ensure that all
underground utility lines are clearly marked.
D. The Contractor shall shore up, brace, underpin, secure, and protect as necessary all foundations and other
parts of existing structures adjacent to, adjoining, and in the vicinity of the site, which may be affected by the
excavations or other operations connected with the construction of the project.
E. Any equipment temporarily removed as a result of work under this contract shall be protected, cleaned, and
replaced in the same condition as at the time of award of this contract.
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HND Form 402
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
F. New work, which connects to existing work, shall correspond in all respects with that to which it connects
and/or be similar to existing work unless otherwise required by the specifications.
G. No structural members shall be altered or in any way weakened withoutthe written authorization of HND and
the Architect, unless such work is clearly specified in the plans or specifications.
H. If the removal of the existing work exposes discolored or unfinished surfaces, or work out of alignment, such
surfaces shall be refinished, or the material replaced as necessary to make the continuous work uniform and
harmonious. This, however, shall not be construed to require the refinishing or reconstruction of dissimilar
finishes previously exposed, or finished surfaces in good condition, but in different planes or on different
levels when brought together by the removal of intervening work, unless such refinishing or reconstruction is
specified in the plans or specifications..
I. The Contractor shall give all required notices to any adjoining or adjacent property owner or other party
before the commencement of any work.
J. The Contractor shall indemnify and save harmless HND, the Architect, and the Owner from any damages on
account of settlement or the loss of lateral support of adjoining property, any damages from changes in
topography affecting drainage, and from all loss or expense and all damages for which HND, the Architect, or
the Owner may become liable in consequence of such injury or damage to adjoining and adjacent structures
and their premises.
K. The Contractor will repair any damage to vegetation, structures, equipment, utilities, or improvements,
including those that are the property of a third party, resulting from failure to comply with the requirements of
this contract or failure to exercise reasonable care in performing the work. If the Contractor fails or refuses to
repair the damage promptly, HND may have the necessary work performed and charge the cost to the
Contractor. .
13. Temporary Buildings and Transportation of Materials.
A. Temporary buildings (e.g., storage sheds, shops, offices, sanitary facilities) and utilities may be erected by the
Contractor only with the approval of HND and the Owner and shall be built with labor and materials furnished by
the Contractor without expense to HND or the Owner. The temporary buildings and utilities shall remain the
property of the Contractor and shall be removed at the Contractor's expense upon completion of the work. With
the written consent of HND and the Owner, the buildings and utilities may be abandoned and need not be
removed.
B. The Contractor shall, as directed by HND, use only established roadways, or use temporary roadways constructed
by the Contractor when and as authorized by HND. When materials are transported in prosecuting the work,
vehicles shall not be loaded beyond the loading capacity recommended by the manufacturer of the vehicle. or
prescribed by any federal, state, or local law or regulation. When it is necessary to cross curbs or sidewalks, the
Contractor shall protect them from damage. The Contractor shall repair or pay for the repair of any damaged
curbs, sidewalks, or roads.
14. Clean Air and Water (Applicable to Contracts in Excess of $100,000).
A. Definition. "Facility" means any building, plant, installation, structure, mine, vessel or other floating craft,
location, or site of operations, owned, leased, or supervised by the Contractor or any subcontractor, used in
the performance of the contract or any subcontract. When a location or site of operations includes more than
one building, plant, installation, or structure, the entire location or site shall be deemed a facility except when
the Administrator, or a designee, of the Environmental Protection Agency (EPA) determines that independent
facilities are collocated in one geographical area.
B. In compliance with regulations issued by the United States Environmental Protection Agency (EPA), 40 CFR
Part 15, pursuant to the Clean Air Act, as amended ("Air Act"), 42 U.S.C. 7401, et seq., the Federal Water
Pollution Control Act, as amended ("Water Act"), 33 U.S.C. 1251, et seq., and Executive Order 11738, the
Contractor agrees to:
Page 10 of 31
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HND Form 402
'4 (Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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(2.)
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. Not utilize any facility in the performance of this contract or any subcontract which is listed on the EPA
List of Violating Facilities pursuant to Part 15 of the regulations for the duration of time that the facility
remains on the list;
Promptly notify HND if a facility the Contractor intends to use in the performance of this contract is on
the EPA List of Violating Facilities or the Contractor knows that it has been recommended to be placed
on the List; .
Comply with all requirements of the Air Act and the Water Act, including requirements of Section 114
of the Air Act and Section 308 of the Water Act, and all applicable clean air and clean water standards;
and,
Include or cause to be included the provisions of this clause in every subcontract, and taKe such action
as HUD may direct as a means of enforcing such provisions.
Energy Efficiency.
The ContraCtor shall comply with all standards and policies relating to energy efficiency which are contained in the
energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Public Law 94-163)
for the State of Georgia.
15.
Inspection and Acceptance of Construction.
A. . Definitions. As used in this clause:
(1.) "Acceptance" means the act of HND by which HND and the Architect approve and the Owner
assumes ownership of the work performed under this contract. Acceptance may be partial or
com~~. .
(2.) "Inspection" means examining and testing. the work performed under the contract (including, when
appropriate, raw materials, equipment, components, and intermediate assemblies) to determine
whether it conforms to contract requirements.
(3.) 'Testing" means that element of inspection that determines the properties or elements, including
functional operation of materials, equipment, or their components, by the application of established
scientific principles and procedures.
B. The Contractor shall maintain an adequate quality control system and will ensure that the work performed
under the contract conforms to contract requirements. All work is subject to inspection and test by HND and
the Architect at all places and at all reasonable times before acceptance to ensure strict compliance with the
terms of the contract. If HND requires the contractor to work overtime, on weekends or on holidays, the
contractor must first notify HND in writing of the overtime schedule. If HND determines it necessary to have
HND or Architect staff present or on call during the contractor's overtime, the contractor shall reimburse HND
or the Architect for the staff costs at time and half the regular staff rate. Should the contractor fail to
reimburse HND. by the next progress payment requested by the contractor, HND shall deduct such
reimbursement from the contractor's next progress payment.
C. HND and Architect inspections and tests are for the benefit of HND and the Owner and do not:
(1.) relieve the Contractor of responsibility for providing adequate quality control measures;
(2.) relieve the Contractor of responsibility for loss or damaged material before acceptance;
(3.) constitute or imply acceptance; or,
(4.) affect the continuing rights of the Owner after acceptance of the completed work under paragraph J
below.
D. The presence or absence of HND or the Architect does not relieve the Contractor from any contract
requirement, nor is he authorized to change any term or condition of the specifications without HND's written
authorization. HND shall give all instructions and approvals with respect to the work to the Contractor.
16.
Page 11 of 31
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HND Form 402
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
E. The Contractor shall promptly furnish, without additional charge, all facilities, labor, and material reasonably
needed for performing such safe and convenient inspections and tests as may be required by HND. HND
may charge to the Contractor any additional cost of inspection or test when work: is not ready at the time
specified by the Contractor fqr inspection or test, or when prior rejection makes re-inspection or retest
necessary. HND shall perform all inspections and tests in a manner that will not unnecessarily delay the
work. Special, full size, and performance tests shall be performed as described in the contract.
F. HND and the Architect may conduct routine inspections of the construction site on a daily basis.
G. The Contractor shall, without charge, replace or correct work found by HND or the Architect not to conform to
contract requirements, unless HND decides that it is in their interest or that of the Owner to accept the work
with an appropriate adjustment in contract price. The Contractor shall promptly segregate and remove
rejected material from the premises. .
H. . If the Contractor does not promptly replace or correct rejected work, HND may:
(1.) by contract or otherwise, repiace or correct the work and charge the cost to the Contractor;
(2.) terminate for default the Contractor's right to proceed.
I. If any work requiring inspection is covered up without approval of HND, it must, if r~quested by HND, be
uncovered at the expense of the Contractor. If at any time before final acceptance of the entire work, HND
considers it necessary or advisable to examine work already completed by removing or tearing it out, the
Contractor shall, on request, promptly furnish all necessary facilities, labor, and material. If such work is
found to be defective or non-conforming in any material respect due to the fault of the Contractor or its
subcontractors, the Contractor shall defray all the expenses of the examination and of satisfactory
reconstruction. If, however, such work is found to meet the requirements of the contract, HND shall make an
equitable adjustment to cover the cost of the examination and reconstruction, including, if completion of the
work was thereby delayed, an extension of time.
J. The Contractor shall notify HND and the Architect as to the date when in its opinion all or a designated
portion of the work will be substantially completed and ready for inspection. If HND and the Architect
determine that the state of preparedness is as represented, the inspection will be completed promptly.
Unless otherwise specified in the contract, HND shall accept, as soon as practicable after completion and
inspection, all work required by the contract or that portion of the work HND and the Architect determine and
designate can be accepted separately. Acceptance shall be final and conclusive except for latent defects,
fraud, gross mistakes amounting to fraud, or the Owner's right under any warranty or guarantee.
17. Use and Possession Prior to Completion.
A. The Owner shall.have the right to take possession of or use any completed or partially completed part of the
work. Before taking possession of or using any work, the Architect shall furnish the Contractor a list of items
of work remaining to be performed or corrected on those portions of the work that the Owner intends to take
possession of or use. However, failure of HND or the Architect to list any item of work shall not relieve the
Contractor of responsibility for complying with the terms of the contract. .The Owner's possession or use shall
not be deemed an acceptance of any work under the contract.
B. While the Owner has such possession or use, the ContraCtor shall be relieved of the responsibility for:
(1.) the loss of or damage to the work resulting from the Owner's possession or use, notwithstanding the
terms of the "Permits, Licenses, and Codes" clause of this contract;
(2.) all maintenance costs on the areas occupied; and,
. (3.) furnishing heat, light, power, and water used in the areas occupied without proper remuneration.
C. If prior possession or use by the Owner delays the progress of the work or causes additional expense to the
Contractor, an equitable adjustment shall be made in the contract price or the time of completion, and the
contract shall be modified in writing accordingly.
Page 12 of 31
HND Form 402
-i (Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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20.
Warranty of Title.
The Contractor warrants good title to all materials, supplies, and equipment incorporated in the work and agrees to
deliver the premises, together with all improvements thereon, free from any claims, liens or charges, and agrees
further that neither it nor any other person, firm or corporation shall have any right to a lien upon the premises or
anything appurtenant thereto.
Warranty of Construction.
A. In addition to any other warranties in this contract, the Contractor warrants, except as provided in paragraph
J of this clause, that work performed under this contract conforms to the contract requirements and is free of
any defect in equipment, material, or workmanship performed by himself, any subcontractor, or supplier at
any tier. This warranty shall continue for a period of one year from the date of final acceptance of the work. If
the Owner takes possession of any part of the work before final acceptance, this warranty shall continue for
a period of one year from the date that the Owner takes possession.
B. The Contractor shall remedy, at the Contractor's expense, any failure to conform, or any defect. In addition,
the Contractor shall remedy, at the Contractor's expense, any damage to the Owner's owned or controlled
real or personal property when the damage is the result of:
(1.) the Contractor's failure to conform to Contract requirements; or
(2.) any defects of equipment, material, workmanship or design furnished by the Contractor.
C. The Contractor will restore any work damaged in fulfilling the terms of this clause. The Contractor's warranty
with respect to work repaired or replaced will run for one year from the date of repair or replacement.
D. The Owner shall notify the Contractor, in writing, within a reasonable time after the discovery of any failure,
defect, or damage.
E. If the Contractor fails to remedy any failure, defect, or damage within a reasonable time after receipt of
notice, HND shall have the right to replace, repair, or otherwise remedy the failure, defect, or damage at the
Contractor's expense. .
F. With respect to all warranties, express or implied, from subcontractors, manufacturers, or suppl'iers for work
performed and materials furnished under this contract, the Contractor shall:
(1.) obtain all warranties that would be given in normal commercial practice;
(2.). require all warranties to be executed in writing, for the benefit of the Owner; and, i~.'
(3.) enforce all warranties for the benefit of the Owner.
G. In the event the Contractor's warranty under this clause has expired, the Owner may bring suit at its own
expense to enforce a subcontractor, manufacturer, or supplier warranty.
H. Unless a defect is caused by the negligence of the Contractor or subcontractor at any tier, the Contractor
shall not be liable for the repair of any defective material fumished by the Owner, nor for the repair of any
damage that results from any defect in Owner furnished material. .
I. Notwithstanding any provisions herein to the contrary, the establishment of the time periods in paragraphs A
and C above relate only to the specific obligation of the Contractor to correct the work, and have no
relationship to the time within which his obligation to comply with the contract may be sought to be enforced,
nor to the time within which proceedings may be commenced to establish the Contractor's liability with
respect to its obligation other than specifically to correct ,the work.
J. This warranty shall not limit the Owner's rights under the "Inspection and Acceptance of Construction"
clause of this contract with respect to latent defects, gross mistakes or fraud.
Prohibition Against Liens.
The Contractor is prohibited from placing a lien on the property of HND or Augusta-Richmond County, or it's
officers or agents. This prohibition shall apply to all subcontractors at any tier and all material suppliers.
Page 13 of 31
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HND Form 402
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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1. Contract Period.
The Contractor shall complete all work required under this contract within the time schedule established in the
Notice to Proceed issued by HND.
2. Order of Precedence.
In the event of a conflict between these General Conditions and the Specifications, the General Conditions shall
prevail. In the event of a conflict between the contractsnd any applicable state or local law or regulation, the state
or local law or regulation shall prevail; provided that .such state or local law or regulation does not conflict with, or is
less restrictive than applicable federal law, regulation, or Executive Order. In the event of such a conflict, applicable
federal law, regulation, or Executive Order shall prevail.
3.
Payments to Contractor.
A. Payments to the Contractor will be made by HND on behalf of the Owner. HND shall pay the Contractor the
price as provided in this contract.
B. Before any payment is made, an inspection by an HND Rehabilitation Inspector and the Architect must be
performed. HND shall make progress payments approximately every 30 days on the HND-determined value
of work accomplished that meets the standards of quality established under the contract, as approved by
HND and the Architect. HND may, with the approval of the Director, make more frequent payments to
contractors that are qualified small businesses.
C. Before the first progress payment under this contract, the Contractor shall furnish, in such detail as
requested by HND, a breakdown of the total contract price showing the amount for each principal category of
the work, which shall substantiate the payment requested and provide a basis for determining progress
payments. The breakdown shall be approved by HND. If the contract covers more than one project, the
Contractor shall furnish a separate breakdown for each. The values and quantities employed in making up
this breakdown are for determining the amount of progress payments and shall not be construed as a basis
for additions to or deductions from the contract price.
D. The Contractor shall submit, on forms provided by HND, requests for payment showing the value of the work
performed during the period based upon the approved breakdown of the contract price. Such payment
requests shall be submitted only for work completed during that period and are subject to correction and
revision as required. HND, the Architect, and the Owner must approve the estimates prior to payment. If the
contract covers more than one project, .the Contractor shall furnish a separate progress payment estimate for
each.
E. The HND payment request shall include the following certification, which shall be signed by the Contractor,
or payment shall not be made:
"I hereby certify, to the best of my knowledge and belief, that:
(1.) The amounts requested are only for performance in accordance with the specifications, terms, and
conditions of the contract;
(2.) Payments to subcontractors and suppliers have been made from previous payments received under
the contract, and timely payments will be made from the proceeds of the payment covered by this
certification, in accordance with subcontract agreements; and,
(3.) This request for progress payments does not include any amounts that the prime contractor intends to
withhold or retain from a subcontractor or supplier in accordance with the terms and conditions of the
subcontract. n
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HND Form 402
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CONTRACT DOCUMENTS - CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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F. Except as otherwise provided in State law, HND shall retain ten (10) percent of the amount of progress
payments until completion and acceptance of all work under the contract; except, that if upon completion of
50 percent of the work, HND, after consulting with the Architect, determines that the Contractor's
performance and progress are satisfactory, HND may make .the remaining payments in full for the work
subsequently completed. If HND and the Architect subsequently determine that the Contractor's performance
and progress are unsatisfactory, HND shall reinstate the ten (10) percentretainage until such time as HND
and the Architect determine that performance and .progress are satisfactory.
G. HND may authorize material delivered on the site and preparatory work already completed to be taken into
consideration when computing progress payments. Material delivered to the Contractor at locations other
than the site may also be taken into consideration if the Contractor fumishes satisfactory evidence that:
(1.) it has acquired title to such material;
(2.) the material is properly stored in a bonded warehouse, storage yard, or similar suitable place as may
be approved by HND;
(3.) the material is insured to cover its full value; and
(4.) the material will be used to perform this contract.
H. Before any progress payment that includes delivered material is made; the Contractor shall furnish such
documentation as HND may require assuring the protection of the Owner's interest in such materials. The
Contractor shall remain responsible for such stored material notwithstanding the transfer of title to the
Owner.
I. All material and work covered by progress payments made shall, at the time of payment become the sole
property of the Owner, but this shall not be construed as:
(1.) relieving the Contractor from the sole responsibility for all material and work upon which payments
have been made or the restoration of any damaged work; or,
(2.) waiving the right of the Owner to require the fulfillment of all of the terms of the contract.
J. In the event the Contractor's work has been damaged by other contractors or persons other than employees
of HND, the Architect, or the Owner in the course of their employment, the Contractor shall restore such
damaged work without cost to HND or the Owner and seek redress for its damage only from those who
directly caused it..
K. HND shall make the final payment due the Contractor under this contract after:
(1.) completion and final acceptance of all work; and
(2.) presentation of release of all claims against HND or the Owner arising by virtue of this contract, other
than claims, in stated amounts, that the Contractor has specifically excepted from the operation of the
release. Each such exception shall embrace no more than one claim, the basis and scope of which
shall be clearly defined.
L. The amounts for such excepted cl.aims shall not be included in the request for final payment. A release may
also be required of the assignee if the Contractor's claim to amounts payable under this contract has been
assigned.
M. Prior to making any payment, HND may require the Contractor to fumish receipts or other evidence of
payment from all perSons performing work and supplying material to the Contractor, if HND determines such
evidence is necessary to substantiate claimed costs.
N. Prompt Pay Act. This Agreement is intended by the Parties to, and does, supersede any and all provisions of
the Georgia Prompt Pay Act, O.C.G.A. Section 13-11-1, et seq. In the event any provision of this Agreement
is inconsistent with any provision of the Prompt Pay Act, the provision of this Agreement shall control.
O. HND shall not:
(1.) determine or adjust any claims for payment or disputes arising thereunder between the Contractor and
its subcontractors or material suppliers; or,
Page 15 of 31
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HND Form 402
,: (Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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(2.) withhold any money for the protection of the subcontractors or material suppliers. The failure or refusal
of HND to withhold money from the Contractor shall in nowise impair the obligations of any surety or
sureties under any bonds furnished under this contract.
4. Contract Modifications.
A. Only HND has authority to modify any term or condition of this contract. Any contract modification shall be
authorized in writing.
B. HND may modify the contract unilaterally:
(1.) . pursuant to a specific authorization stated in a contract clause (e.g., Changes); or
(2.) for administrative matters which do not change the rights or responsibilities of the parties (e.g.,
changes in addresses). All other contract modifications shall be in the form of supplemental
agreements signed by HND, the Contractor, and the Owner.
C. When a proposed modification requires the approval of the Augusta-Richmond County Commission prior to
its issuance (e.g., a change order that exceeds the Owner's approved threshold), modification shall not be
effective until the required approval is received by HND.
5.
Changes.
A. HND may at any time, without notice to the sureties, by written order indicated to be a change order, make
changes in the work within the general scope of the contract including changes:
(1.) in the specifications (including drawings and designs);
(2.) in the method or manner of performance of the work;
(3.) owner fumished facilities, equipment, materials, services, or site; or,
(4.) . directing the acceleration in the performance of the work.
B. Any other written order or oral order (which, as used in this paragraph, includes direction, instruction,
interpretation, or determination) from HND that causes a change shall be treated as a change order;
provided, that the Contractor gives HND written notice stating: .
(1.) the date, circumstances and source of the order; and
(2.) that the Contractor regards the order as a change order.
C. Except as provided in this clause, no order, statement, or conduct of HND shall be treated as a change
under this clause or entitle the Contractor to an equitable adjustment.
D. If any change under this clause causes an increase or decrease in the Contractor's cost or the time required'
. for the performance of any of the work under this contract.. whether or not changed by any such order, HND
shall make an equitable adjustment and modify the contract in writing. However, except for an adjustment
based on defective specifications, no proposal for any change under paragraph B above shall be allowed for
any costs incurred more than 20 days (5 days for oral orders) before the Contractor gives written notice as
required. In the case of defective specifications for which HND or the Architect is responsible, the equitable
adjustment shall include any increased cost reasonably incurred by the Contractor in attempting to comply
with the defective specifications. .
E. The Contractor must assert its right to an adjustment under this clause within 30 days after:
(1.) receipt of a written change order under paragraph A of this clause; or
(2.) the furnishing of a written notice under paragraph B of this clause, by submitting a written statement
describing the general nature and the amount of the proposal.
F. If the facts justify it, HND may extend the period for submission. The proposal may be included in the notice
required under paragraph B above. No proposal by the Contractor for .an equitable adjustment shall be
allowed if asserted after final payment under this contract.
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HNO Form 402
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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G. The Contractor's written proposal for equitable adjustment shall be submitted in the form of a lump sum
proposal supported with an itemized breakdown of all increases and decreases in the contract in at least the
following details:
H. Direct Costs. Materials (list individual items, the quantity and unit cost of each, and the aggregate cost);
Transportation and delivery costs associated with materials; Labor breakdowns by hours or unit .costs
(identified with specific work to be performed); Construction equipment exclusively necessary for the change;
Costs of preparation and/or revision to shop drawings resulting from the change; Worker's Compensation
and Public Liability Insurance; Employment taxes under FICA and FUT A; and, Bond Costs - when size of
change warrants revision.
I. Indirect Costs. Indirect costs may include overhead, general and administrative expenses, and fringe
benefits not normally treated as directcosts.
J. . Profit. The amount of profit shall be negotiated and may vary according to the nature, extent, and complexity
of the work required by the change.
K. The allowability of the direct and indirect costs shall be determined in accordance with the Contract Cost
Principles and Procedures for Commercial Firms in Part 31 of the Federal Acquisition Regulation (48 CFR 1-
31), as implemented by HUD Handbook 2210.18, in effect on the date of this contract. The Contractor shall
not be allowed a profit on the profit received by any subcontractor. Equitable adjustments for deleted work
shall include a credit for profit and may include a credit for indirect costs. On proposals covering both
increases and decreases in the amount of the contract, the application of indirect costs and profit shall be on
the net-change in direct costs for the Contractor or subContractor performing the work.
The Contractor shall include in the proposal its request for time extension (if any), and shall include sufficient
information and dates to demonstrate whether and to what extent the change will delay the completion of the
contract in its entirety.
HND shall act on proposals within 30 days after their receipt, or notify the Contractor of the date when such
action will be taken.
Failure to reach an agreement on any proposal shall be a dispute under the clause entitled "Disputes"
herein. Nothing in this clause, however, shall excuse the Contractor from proceeding with the contract as
changed.
O. Except in an emergency endangering life or property, no change shall be made by the Contractor without a
prior order from HND.
L.
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6. Suspension of Work.
A.. HND may order the Contractor in writing to suspend, delay, or interrupt all or any part of the work of this
contract for the period of time that HND determines appropriate for the convenience of HND or the Owner.
B. If the performance of all or any part of the work is, for an unreasonable period of time, suspended, delayed,
or interrupted:
(1.) By an act of HND in the administration of this contract; or
(2.) By HND's failure to act within the time specified in this contract (or within a reasonable time if not
specified);
an adjustment shall be made for any increase in the cost of performance of the contract (excluding profit)
necessarily caused by such unreasonable suspension, delay, or interruption and the contract modified in
writing accordingly. However, no adjustment shall be made under this clause for any suspension, delay, or
interruption to the extent that performance would have been so suspended, delayed, or interrupted by any
other cause, including the fault or negligence of the Contractor or for which any equitable adjustment is
provided for or excluded under any other provision of this contract.
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HND Form 402
. (Rev. 06/03)
CONTRACT DOCUMENTS-- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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c.
A claim under this clause shall not be allowed:
(1.) For any costs incurred more than 20 days before the Contractor shall have notified HND in writing of
the act or failure to act involved (but this requirement shall not apply as to a claim resulting from a
suspension order); and,
(2.) Unless the claim, in an amount stated,is asserted in writing as soon as practicable after the
termination of the suspension, delay, or interruption, but not later than the date of final payment under .
the contract.
7. Disputes.
A. "Claim," as used in this clause, means a written demand or assertion by one of the contracting parties
seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of
contract terms, or other relief arising under or relating to the contract. A claim arising under the contract,
unlike a claim relating to the contract, is a claim that can be resolved under a contract clause that provides
for the relief sought by the claimant. A voucher, invoice, or other routine request for payment that is not in
dispute when submitted is not a claim. The submission may be converted to a claim by complying with the
requirements of this clause, if it is disputed either as to liability or amount or is not acted upon in a
reasonable time.
B. Except for disputes arising under the clauses entitled "Labor Standards" and "Labor Standards - Non-
routine Maintenance", all disputes arising under or relating to this contract, including any claims for
damages for the alleged breach thereof which are not disposed of by agreement, shall be resolved under this
clause.
All claims by the Contractor shall be made in writing within ten (10) calendar days from the date of the
occurrence of the dispute and submitted to HND for a written decision. A claim by the Owner against the
Contractor shall be subject to a written decision by HND. All claims by the Contractor shall be made in writing
and submitted to HND for a written decision. .
HND shall, within 60 days after receipt of the request, decide the claim or notify the Contractor of the date by
which the decision will be made.
HND's decision shall be final unless the Contractor.
(1.) appeals in writing to the HND Director in accordance with HND's policies and procedures;
(2.) refers the appeal to the County Administrator for independent mediation or arbitration in accordance
with HND's policies and procedures.
F. Such appeal must be made within 14 days after receipt of HND's decision.
G. The Contractor shall proceed diligently with performance of this contract, pending final resolution of any
request for relief, claim, appeal, or action arising under or relating to the contract, and comply with any
decision of HND.
H. This Agreement is intended by the Parties to, and does, supersede any and all provisions of the Georgia
Prompt Pay Act, O.C.G.A. Section 13-11-1, et seq. In the event any provision of this Agreement is
inconsistent with any provision of the Prompt Pay Act, the provision of this Agreement shall control.
I. All claims, disputes and other matters in question between the Owner and the Contractor arising out of or
relating to the Agreement, or the breach thereof, shall be decided in the Superior Court of Richmond County,
Georgia. The Contractor, by executing this Agreement, specifically consents to jurisdiction and venue in
Richmond County and waives any right to contest the jurisdiction and venue in the Superior Court of
Richmond County, Georgia.
J. Notwithstanding any provision of the law to the contrary, the parties agree that no interest shall be due
Contractor on any sum held as retainage pursuant to this Agreement and Contractor specifically waives any
claim to same.
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CONTRACT DOCUMENTS --CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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K. Notwithstanding any provision of the General Conditions, there shall be no substitution of materials or
change in means, methods, techniques, sequences or procedures of construction that are not determined to
be equivalent to those indicated or required in the Contract Document, without an Amendment to the
Contract.
L. Contractor acknowledges that all records relating to this Agreement and the services to be provided under
the contract may be a public record subject to Georgia's Open RecOrds Act (O.C.G.A. S 50-18-70, et seq.).
Contractor shall cooperate fully in responding to such request and making all records, not exempt, available
for inspection and copying as provided by law.
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8. Default.
A. HND may declare the. Contracto'r in default by written notice thereof to the Contractor, and terminate the
whole or any part of this Contract for any of the following reasons:
(1.) Failure to begin work within the time specified in the Contract or as otherwise specified;
(2.) Failure to perform the work with sufficient labor,. equipment, or material to insure the completion of the
speCified work in accordance with the Contract terms;
(3.) Unsatisfactory performance of the work;
(4.) Failure or refusal to remove material, or remove and replace any work rejected as defective or
unsatisfactory;
(5.) Discontinuance of work without approval;
(6.) Failure to resume work, which has been discontinued, within a reasonable tim.e after notice to do so;
(7.) Insolvency or bankruptcy;
(8.) Assignment made for the benefit of creditors;
(9.) Failure or refusal within 10 days after payment by HND or upon written notice by HND, to make
. payment or show cause why payment should not be made, of any amounts due for materials
fumished, labor performed, equipment rentals, or utility services rendered;
(10.) Failure to protect, to repair, or to make good any damage or injury to property; or
(11.) Breach of any provision of this Contract.
B. In the event that HND terminates this Contract in whole or in part as provided in Subparagraph A above,
HND may procure, upon such terms and in such manner as it determines, services similar or identical to
those so terminated, and the Contractor shall be liable to HND for any reasonable excess costs for such
similar or identical services included within the terminated part of the Contract.
C. If the Contract is terminated as provided in Subparagraph A above, HND, in addition to any other rights
provided in this paragraph, may require the Contractor to transfer title and deliver immediately to the Owner: i
in the manner and to the extent directed by HND, such partially completed work, including, where applicable, "
reports, working papers and other documentation, as the. Contractor has specifically produced or specifically
acquired for the performance of such part of the Contract as has been terminated. Payment for completed
work accepted by HND shall be at the Contract price. Except as provided below, payment for partially
completed work including reports and working papers, delivered to and accepted by HND shall be in an
amount agreed upon by the Contractor and HND. HND may withhold from amounts otherwise due the
Contractor for such completed or partially completed works, such sum as HND determines to be necessary
to protect HND and the Owner againstloss.
D. The rights and remedies of HND provided in this paragraph shall not be exclusive and are in addition to any
other rights and remedies provided by law or under this Contract.
E. HND failure to exercise any rights or remedies provided in this paragraph shall not be construed to be a
waiver by HND of its rights and remedies in regard to the event of default or any succeeding event of default.
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GENERAL CONDITIONS
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HND Form 402
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F.
The Contractor's right to proceed shall not be terminated or the Contractor charged with damages under this
clause if the delay in completing the work arises from unforeseeable causes beyond the control and without
the fault or negligence of the Contractor. Examples of such causes include:
(1.) acts of God, or of the public enemy;
(2.) acts of the Owner, HND, or other govemmental entity in either its sovereign or contractual capacity;
(3.) acts of another contractor in the performance of a contract with HND or the Owner;
(4.) fires;
(5.) floods;
(6.) epidemics;
(7.) quarantine restrictions;
(8.) strikes;
(9.) freight embargoes;
. (10.) unusually severe weather; or .
(11.) delays of subcontractors or suppliers at any tier arising from unforeseeable causes beyond the control
. and without the fault or negligence of both the Contractor and the subcontractors or suppliers.
The Contractor, within 10 days from the beginning of such delay (unless extended by HND) must notify HND
in writing of the causes of delay. HND shall ascertain the facts and the extent of the delay. If, in the judgment
of HND, the findings of fact warrant such action, time for completing the work shall be extended by written
modification to the contract. The findings of HND shall be reduced to a written decision that shall be subject
to the provisions of the "Disputes" clause of this contract.
If, after termination of the Contractor's right to proceed, it is determined that the Contractor was not in
default, or that the delay was excusable, the rights and obligations of the parties will be the same as if the
termination had been for convenience of HND and the Owner.
G.
H.
9. Liquidated Damages.
A. If the Contractor fails to complete the work within the time specified in the contract, or any extension, as
specified in the clause entitled "Default" of this contract, the Contractor shall pay to the Owner, as liquidated
damages, the sum of $100.00 for each day of delay. If different completion dates are specified in the contract
for separate parts or stages of the work, the amount of liquidated damages shall be assessed on those parts~. ;
or stages which are delayed. To theextentthatthe Contractor's delay or nonperformance is excused under:"
another clause in this contract, liquidated damages shall not be due the Owner. The Contractor remains .
liable for damages caused other than by delay.
B. If HND terminates the Contractor's right to proceed, the resulting damage will consist of liquidated damages
until such reasonable time as may be required for final completion of the work together with any increased
costs occasioned HND in completing the work.
C. If HND does not terminate the Contractor's right to proceed, the resulting damage will consist of liquidated
damages until the work is completed or accepted.
10. Tennination for Convenience.
A. HND may terminate this contract in whole, or in part, whenever HND determines that such termination is in
the' best interest of HND and the Owner. Any such termination shall be effected by delivery to the Contractor
of a Notice of Termination specifying the extent to which the performance of the work under the contract is
terminated, and the date. upon which such termination becomes effective. .
B. If the performance of the work is terminated, either in whole or in part, HND and the Owner shall be liable to
the Contractor for reasonable and proper costs resulting from such termination upon the receipt by HND of a
properly presented claim setting out in detail:
Page 20 of 31
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HND Form 402
(Rev. 06/03) GENERAL CONDITIONS CDBG-03036
", (1.) the total cost of the work performed to date of termination less the total amount of contract payments
made to the Contractor;
(2.) the cost (including reasonable profit) of settling and paying claims under subcontracts and material
orders for work performed and materials and supplies delivered to the site, payment for which has not
been made by HND to the Contractor or, by the Contractor to the subcontractor or supplier;
(3.) the cost of preserving and protecting the work already performed until the Owner or assignee takes
possession thereof or assumes responsibility therefor,
(4.) the actual or estimated cost of legal and accounting services reasonably necessary to prepare and
present the termination claim to HND; and
(5.) an amount constituting a reasonable profit on the value of the work performed ,by the Contractor.
C. HND will act on the Contractor's claim within 60 days of receipt of the Contractor's c~im.
D. Any disputes with regard to this clause are expressly made subject to the provifUons of the "Disputes"
clause of this contract.
11. Assignment of Contract.
A. Subject to the terms and conditions of this Contract, this Contract shall be binding upon the parties and their
respective successors and assigns.
B. The Contractor shall not subcontract with any person or entity to perform all or any part of the work to be
performed under this Contract without the prior written consent of HND, which consent may be withheld at
the sole and absolute discretion of HND.
C. The Contractor may not assign, in whole or in part, this Contract or its rig~, duties, obligations, or
responsibilities hereunder without the prior written consent of HND, which con~ may be withheld at the
sole and absolute discretion of HND.
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) D. The Contractor may not, without the consent of HND, assign its rights to paymer'jUo be received under the
- . Contract.
E. For the purposes of this Contract, the term "assign" shall include, but shall not be:limited to, the sale, gift,
assignment, pledge, or other transfer of any ownership interest in the Contractor Prtrrided, however, that the
term shall not apply to the sale or other transfer of stock of a publicly traded compa~.
-,
F. Any assignment consented to by HND shall be evidenced by a written assignment,agreement executed by
the Contractor and its assignee in which the assignee agrees to be legally bouri,~:by all of the terms and
conditions of the Contract and to assume the duties, obligations, and responsibiliti~eing assigned.
G. A change of name by the Contractor, following which the Contractor's federal.-tax identification number
remains unchanged, shall not be considered to be an assignment hereunder. The"COntractor shall give HND
written notice of any such change of name. . .
" ..
12. Insurance and Bonds.
A. Before commencing work, the Contractor and each subcontractor shall furnish HND with certificates of
insurance showing the following insurance is in force and will insure all operations under the Contract:
(1.) Workers' Compensation, in accordance with State of Georgia Workers' ComP!3nsation laws.
(2.) Commercial General Liability with a combined single limit for bodily injury and4>roperty damage of not
less than $1,000,000 amount] per occurrence to protect the Contractor ~d each subcontractor
against claims for bodily injury or death and damage to the property. of others. This shall cover the use
of all equipment, hoists, and vehicles on the site(s) not covered by AutolTl(jbile Liability under (3)
below. If the Contractor has a "claims-made" policy, then the following additiqnal requirements apply:
the policy must provide a "retroactive date" which must be on or before tbe-.:execution date of the
Contract; and the extended reporting period may not be less than five yearsloflowing the completion
date of the Contract.
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HNO Form 402
(Rev. 06103)
CONTRACT DOCUMENTS - CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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(3.) Automobile Liability on owned and non-owned motor vehicles used on the site(s) or in connection
therewith for a combined single limit for bodily injury and property damage of not less than $1,000,000
per occurrence.
Before commencing work, the Contractor shall furnish HND with a certificate of insurance evidencing that
Builder's Risk (fire and extended coverage) Insurance on all work in place and/or materials stored at the
building site(s), including foundations and building equipment, is in force. The Builder's Risk Insurance shall
be for the benefit of the ContraCtor and the Owner as their interests. may appear and each shall be named in
the policy or policies as an insured. The Contractor in installing equipment supplied by the Owner shall carry
insurance on such equipment from the time the Contractor takes possession thereof until HND and the
Owner accept the Contract work. The Builder's Risk Insurance need not be carried on excavations, piers,
footings, or foundations. until such time as work on the superstructure is started. It need not be carried on
landscape work. Policies shall fumish coverage at all times for the full cash value of all completed
construction, as well as materials in place and/or stored at the site(s), whether or not partial payment has
been made by HND. The Contractor may terminate this insurance on buildings as of the date taken over for
occupancy by the Owner. The Contractor is not required to carry Builder's Risk Insurance for modernization
work that does not involve structural alterations Qr additions and where the Owner's existing fire and
extended coverage policy can be endorsed to include such work.
Prior to signing of the Construction Contract, the Contractor must furnish a Performance Bond and Labor and
Material Payment Bond covering the faithful performance of the Contract and the payment of all obligations
arising thereunder, issued at 100% of the Contract Amount for all coverages. The Performance Bond and the
Labor and Material Payment Bond may be in one, or may be in separate instruments, in accordance with
local law.
D. The Contractor shall fumish copies of all insurance certificates to HND before commencing with the work,
showing evidence of coverage and naming as additional insured to the policies the Owner, including their
respective Commissioners, Board Members,. Officers, Agents and Employees, individually and collectively.
The contractor shall not be allowed to commence work until the required certificates are provided to HND.
Additionally, should the insurance become ineffective or lapse during construction, HND shall require the
contractor to cease work until such time as the contractor submits proof of insurance in compliance with the
requirements of this contract. If such suspension of work is necessary, the contractor shall not be entitled to
addition time to complete the work.
E. All insurance shall be carried with companies that are financially responsible and admitted to do business in
the State of Georgia. If any such insurance is due to expire during the construction period, the Contractor
(including subcontractors, as applicable) shall not permit the coverage to lapse and shall furnish evidence of
coverage to HND. All certificates of insurance, as evidence of coverage, shall provide that no coverage may
be canceled or non-renewed by the insurance company until at least 30 days prior written notice has been
given to HND.
B.
c.
13. Subcontracts.
A.
Definitions. As used in this contract:
(1.) "Subcontract" means any contract, purchase order, or other purchase agreement, including
modifications and change orders to the foregoing, entered into by a subcontractor to furnish supplies,
materials, equipment, and services for the performance of the prime contract or a subcontract.
(2.) "Subcontractor" means any supplier, vendor, or firm that furnishes supplies, materials, equipment,
and services for the performance of the prime contract or a subcontract.
No subcontract for assignment of this contract shall be made without the written consent of HND.
The Contractor shall not enter into any subcontract with any subcontractor who has been denied participation
in any HND or HUD program or who has been suspended or debarred from participating in contracting
programs by Augusta-Richmond County, HND, HUD, or any other agency of the United States Govemment
or of the State of Georgia.
B.
C.
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HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS - CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
('\
The Contractor shall be fully responsible for the acts or omissions of its subcontractors, and of persons either
directly or indirectly employed by them. as for the acts or omissions of persons directly employed by the
Contractor.
E. The Contractor shall insert appropriate clauses in all subcontracts to bind subcontractors to the terms and
conditions of this contract insofar as they are applicable to the work of subcontractors.
F. Nothing contained in this contract shall create any contractual relationship between any subcontractor and
HND or between any subcontractor and the Owner.
D.
14. Subcontracting with Small and Minority Firms, Women's Business Enterprise, and Labor Surplus Area
Firms.
The Contractor shall take the following steps to ensure that, whenever possible, subcontracts are awarded to small
business firms, minority firms, women's business enterprises, and labor surplus area firms:
A. Placing qualified small and minority businesses and women's business enterprises on solicitation lists;
B. Ensuring that small and minority businesses and women's business enterprises are solicited whenever they
are potential sources;
C. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum
participation by small and minority businesses and women's business enterprises;
D. Establishing delivery schedules, where the requirements of the contract permit, which encourage
participation by small and minority businesses and women's business enterprises; and
E. Using the services and assistance of the U.S. Small Business Administration, the Minority Business
Development Agency of the U.S. Department of Commerce, and State and local governmental small
business agencies.
,/'---
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15.
Equal Employment Opportunity.
A. During the performance of this contract, the Contractor agrees as follows:
(1.) The Contractor shall not discriminat~ against any employee or applicant for employment because of
race, color, religion, sex, national origin, or handicap.
(2.) The Contractor shall take affirmative action to ensure that applicants are employed, and that
employees are treated during employment without regard to their race, color, religion, sex, national
origin, or handicap. Such action shall include, but not be limited to:
(a) employment;
(b) upgrading;
(c) demotion;
(d) transfer;
(e) recruitment or recruitment advertising;
(f) layoff or termination;
(g) rates of payor other forms of compensation; and
(h) selection for training, including apprenticeship.
B. The Contractor shall post in conspicuous places available to employees and applicants for employment the
notices to be provided by HND that explain this clause.
C. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the
Contractor, state that all qualified applicants will receive consideration for employment without regard to race,
color, religion, sex, national origin, or handicap.
Page 23 of 31
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HND Form 402
(Rev. 06/03)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
('"'
D. The Contractor shall send, to each labor union or representative of workers with which it has a collective
bargaining agreement or other contract or understanding, the notice to be provided by HND advising the
labor union or workers' representative of the Contractor's commitments under this clause, and post copies of
the notice in .conspicuous places available to employees and applicants for employment.
E. The Contractor shall comply with Executive Order 11246, as amended, and the rules, regulations, and orders
of the Secretary of Labor.
F. The Contractor shall furnish all information and reports required by Executive Order 11246, as amended,
Section 503 of the Rehabilitation Act of 1973, as amended, and by rules, regulations, and orders of the
Secretary of Labor, or pursuant thereto. The Contractor shall permit access to its books, records, and
accounts by the Secretary of Labor for purposes of investigation to ascertain compliance with such rules,
regulations, and orders.
G. In the event of a determination that the Contractor is not in compliance with this clause or any rule,
regulation, or order of the Secretary of Labor, this contract may be canceled, terminated, or suspended in
whole or in part, and the Contractor may be declared ineligible for further Government contracts, or Federally
assisted construction contracts under the procedures authorized in Executive Order 11246, as amended. In
addition, sanctions may be imposed and remedies invoked against the Contractor as provided in Executive
Order 11246, as amended, the rules, regulations, and orders of the Secretary of Labor, or .as otherwise
provided by law.
H. The Contractor shall include the terms and conditions of this clause in every subcontract or purchase order
unless exempted by the rules, regulations, or orders of the Secretary of Labor issued under Executive Order
11246,as amended, so that these terms and conditions will be binding upon each subcontractor or vendor.
The Contractor shall take such action with respect to any subcontract or purchase order as the Secretary of
Housing and Urban Development or the Secretary of Labor may direct as a means of enforcing such
provisions, including sanctions for noncompliance; provided that if the Contractor becomes involved in, or is
threatened with, litigation with a subcontractor or vendor as a result of such direction, the Contractor may
request the United States to enter into the litigation to protect the interests of the United States.
16. Employment, Training, and Contracting Opportunities for Low-Income Persons, Section 3 of the Housing
and Urban Development Act of 1968. .
(~ ")
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A. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and
Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is to
ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted
projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income~.
persons, particularly persons who are recipients of HUD assistance for housing.
B. The parties to this contract agree to comply with HUD regulations in 24 CFR part 135, which implement
section 3. As evidenced by their execution of this contract, the parties to this contract certify that they. are
under no contractual or other impediment that would prevent them from complying with the part 135
regulations. .
C. The contractor agre~s to send to each labor organization or representative of workers with which the
contractor has a collective bargaining agreement or other understanding, if any,s notice advising the labor
organization or workers representative of the contractors commitments under this section 3 clause, and will
post copies of the notice in conspicuous places at the work site where both employees and applicants for
training and employment positions can see. the notice. The notice shall describe. the section 3 preference,
shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training
positions, the qualifications for each; and the name and location of the person(s) taking applications for each
of the positions; and the anticipated date the work shall. begin.
D. The contractor agrees to include this Section .3 clause in every subcontract subject to compliance with
regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision
of the subcontract or in this Section :3 clause, upon a finding that the subcontractor is in violation of the
regulations in. 24 CFR part 135. The contractor will not subcontract with any subcontractor where the
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CONTRACT DOCUMENTS - CONSTRUCTION
GENERAL CONDITIONS
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HND Form 402
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(Rev. 06/03)
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contractor has knowledge that the subcontractor has been found in violation of the'regulations in 24 CFR
part 135. .
E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1)
after the contractor is selected but before the contract is executed, and (2) with persons other than those to
whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to
circumvent the contractors obligations under 24 CFR part 135.
F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this
contract for default, and debarment or suspension from future HUD assisted contracts,
G. In the event of a determination by HND that the Contractor is not in compliance with this clause or any rule,
. regulation, or report submission requirements of HND, this contract may be canceled, terminated, or
suspended in whole or in part, and the Contractor may be declared ineligible for further HND contracts.
Interest of Members of Congress.
No member of or delegate to the Congress of the United States of America shall be admitted to any share or part of
this contract or to any benefit that may arise therefrom.
Interest of Members, Officers, or Employees and Fonner Members, Officers, or Employees.
No member, officer, or employee of HND, the Owner, no member of the governing body of Augusta-Richmond
County, and no other public official of Augusta-Richmond County who exercises any functions or responsibilities
with respect to the project, shall, during his or her tenure, or for one year thereafter, have any interest, direct or
indirect, in this contract or the proceeds thereof.
18.
Limitations on Payments Made to Influence Certain Federal Financial Transactions.
A. The Contractor agrees to comply with Section 1352 of title 31, United States Code which prohibits the use of
Federal appropriated funds to pay any person for influencing or attempting to influence an officer or
.employee of any agency, a Member of Congress, and officer or employee of Congress, or an employee of a
Member of Congress in connection with any of the following covered Federal actions: the awarding of any
Federal contract; the making of any Federal grant; the making of any Federal loan; the entering into of any
cooperative agreement; or the modification of any Federal contract, grant, loan, or cooperative agreement.
B. The Contractor further agrees to comply with the requirement of the Act to ~ fumish a disclosure (OM8
Standard Form LLL, Disclosure 'of Lobbying Activities) if any funds other than Federal appropriated funds
(including profit or fee received under a covered Federal transaction) have been paid, or will be paid, to any
person for influencing or attempting to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with
a Federal contract, grant, loan, or cooperative agreement.
C. Indian tribes (except those chartered by States) and Indian organizations as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 4508) are exempt from the requirements of this
clause.
20.
Royalties and Patents.
The Contractor shall pay all royalties and license fees. It shall defend all suits or claims for infringement of any
patent rights and shall save HND and the Owner harmless from loss on account thereof; except that HND, the
Architect, and the Owner shall be responsible for all such loss when a particular design, process or the product of a
particular manufacturer or manufacturers is specified and the Contractor has no reason to believe that the specified
design, process, or product is an infringement. If, however, the Contractor has reason to believe that any design,
process or product specified is an infringem.ent of 8" patent, the Contractor shall promptly notify HND. Failure to give
such notice shall make the Contractor responsible for resultant loss.
Page 25 of 31
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HND Form 402
(Rev. 06103)
CONTRACT DOCUMENTS --CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
examination and Retention of Contractor's Records.
A. HND, HUO, or the Comptroller General of the United States, or any of their duly authorized representatives
shall, until 3 years after final payment under this contract, have access to and the right to examine any of the
Contractor's directly pertinent books, documents, papers, or other records involving transactions related to
this contract for the purpose of making audit, examination, excerpts, and transcriptions. .
B. The Contractor agrees to include in first-tier subcontracts under this contract a clause substantially the same
as paragraph (a) above. "Subcontract,. as used in this clause, excludes purchase orders under $10,000.
C. The periods of access and examination in paragraphs A and B above for records relating to (1) appeals
under the "Disputes" clause of this contract, (2) litigation or settlement of claims arising from the
performance of this contract, or (3) costs and expenses of this contract to which HND, HUD, or Comptroller
General or any of their duly authorized representatives has taken exception shall continue until disposition of
such appeals, litigation, claims, or exceptions.
22.
Labor Standards - Davis-Bacon and Related Acts.
. If the total amount of this contract exceeds $2,000, the Federal labor standards set forth in the clause below shall
apply to. the construction work to be performed under the contract, except if the construction. work has been
determined to be "Non-routine Maintenance" subject to the terms of that clause of this contract.
23.
Minimum Wages.
A. All laborers and mechanics employed or working upon the site of the work (or, under the United States
Housing Act of 1937 or under the Housing Act of 1949, in the construction or development of the projeCt) will
be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on
any account (except such payroll deductions as are permitted by regulations issued by the Secretary of
Labor under the Copeland Act (29 CFR Part 3)), the full amount of wages and bona fide fringe benefits (or
cash equivalents thereof) due at time of payment computed at rates not less than those contained in the
wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of
any contractual relationship which may be alleged to exist between the Contractor and such laborers and
mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under Section
1 (b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such
laborers or mechanics, subject to the provisions of 29 CFR 5.5(a)(1)(iv); also, regular contributions made or
costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds,. or
programs, which cover the regular weekly period, are deemed to be constructively made or incurred during
such weekly period. Such laborers and mechanics shall be paid not less than the appropriate wage rate and
fringe benefits in the wage determination for the classification of work actually performed, without regard to
skill, except as provided in 29 CFR Part 5.5(a)(4). Laborers or mechanics performing work in more than one
classification may be compensated at the rate specified for each classification for the time actually worked
therein; provided, that the employer's payroll records accurately set forth the time spent in each classification
in which work is performed. The wage determination (including. any additional classification and wage rates
conformed under 29 CFR 5.5(a)(1)(ii) and the Davis-Bacon poster (WH-1321) shall be posted at all times by
the Contractor and its subcontractors at the site of the work in a prominent and accessible place where it can
be easily seen by the workers. . .
B. . Any class of . laborers or mechanics which is not listed in the wage determination and which is to be
employed under the contract shall be classified in conformance with the wage determination. HUD shall
approve an additiona.l classification and wage rate and fringe benefits therefor only when all the following
criteria have been met:
(1.) The work to be performed by the classification requested is not performed by a classification in the
wage determination; .
(2.) The classification is utilized in the area by the construction industry; and
(3.) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to
the wage rates contained in the wage determination.
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CONTRACT DOCUMENTS -- CONSTRUCTION ,
GENERAL CONDITIONS
Project #:
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HND Form 402
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C. If the Contractor and the laborers and mechanics to be employed in the classification (if known), or their
representatives, and HUD or its designee agree on the classification and wage rate (including the amount
designated for fringe benefits where appropriate), a report of the action taken shall be sent by HUD or its
designee to the Administrator of the Wage and Hour Division, Employee Standards Administration, U.S.
Department of Labor, Washington, DC 20210, The Administrator, or an authorized representative, will
approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise
HUD or its designee or will notify HUD or its designee within the 30-day period that additional time is
necessary,
D. In the event the Contractor, the laborers or mechanics to be employed in the classification or their
representatives, and HUD or its designee do not agree on the proposed classification and wage rate
(including the amount designated for fringe benefits, where appropriate), HUD or its designee shall refer the
questions, including the views of all interested parties and the recommendation of HUD or its designee, to
the. Administrator of the Wage and Hour Division for determination. The Administrator, or an authorized
representative, will issue a determination within 30 days of receipt and so advise HUD or its designee or will
notify HUD or its designee within the 30-da~ period that additional time is necessary.
E. The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs (b)(2)(ii)
or (iii) of this clause shall be paid to all workers performing work in the classification under this contract from
the first day on which work is performed in the classification.
F. Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a
fringe benefit which is not expressed as an hourly rate, the Contractor shall either pay the benefit as stated in
the wage determination or shall pay another bona fide fringe benefit oran 'hourly cash equivalent thereof.
G. If the Contractor does not make payments to a trustee or other third person, the Contractor may consider as
part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing
bona fide fringe benefits under a plan or program; provided, that the Secretary of Labor has found, upon the
written request of the Contractor, that the applicable standards of the Davis-Bacon Act have been met. The
Secretary of Labor may require the Contractor to set aside in a separate account assets for the meeting of
obligations under the plan or program.
H. Withholding of funds. HUD or its designee shall, upon its own action or upon written request of an authorized
representative of the Department of Labor, withhold or cause to be withheld from the Contractor under this
contract or any other Federal contract with the same prime Contractor, or any other Federally-assisted
contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime Contractor,
so much of the accrued payments or advances as may be considered necessary to pay laborers and
mechanics, including apprentices, trainees, and helpers, employed by the Contractor or any subcontractor
the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic,
including any apprentice, trainee, or helper, employed or working on the site of the work (or, under the United
States Housing Act of 1937 or under the Housing Act of 1949, in the construction or development of the
project), all or part of the wages required by the contract, HUD or its designee may, after written notice to the
Contractor, take such action as necessary to cause the suspension of any further payment, advance, or
guarantee of funds until such violations have ceased. HUD or its designee may, after written notice to the
Contractor, disburse such amounts withheld for and on account of the Contractor or subcontractor to the
respective employees to whom they are due. The Comptroller General shall make such disbursements in the
case of direct Davis-Bacon Act contracts.
24.
Payrolls and basic records.
A. Payrolls and basic records relating thereto shall be maintained. by the Contractor during the course of the
work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of
the work (or, under the United States Housing Act of 1937 or under the Housing Act of 1949, in the
construction or development of the project). Such records shall contain the name, address, and social
security number of each such worker, his or her correct classification, hourly rates of wages paid (including
rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the
types described in section 1 (b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked,
Page 27 of 31
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HND Form 402
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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I.
deductions made, and actual wages paid. Whenever the Secretary of Labor has found, under 29 CFR
5.5(a)(1)(iv), that the wages of any laborer or mechanic include the amount of costs reasonably anticipated in
providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the
Contractor shall maintain records which show that the commitment to provide such benefits is enforceable,
that the plan or program is financially responsible, and that the plan or program has been communicated in
writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost
incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs
shall. maintain written evidence of the registration of apprenticeship programs and certification of trainee
programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the
applicable programs.
B. The Contractor shall submit weekly for each week in which any contract work is performed a copy of all.
payrolls to HND for transmission to HUD or its designee. The .payrolls submitted shall set out accurately and
completely all of the information required to be maintained under subparagraph C (1) of this clause. This
information may be submitted in any form desired. Optional Form WH-347 (Federal Stock Number 029-005-
00014-1) is available for this purpose and may be purchased from the Superintendent of Documents, U.S.
Govemment Printing Office, Washington, DC 20402. The prime Contractor is responsible for the submission
of copies of payrolls by all subcontractors.
C. Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the Contractor or
subcontractor or his or her agent who pays or supervises the payment of the persons employed under the
contract and shall certify the following:
(1.) . That the payroll for the payroll period contains the information required to be maintained under
paragraph C of this clause and that such information is correct and complete;
(2.) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the
contract during the payroll period has been paid the full weekly wages earned, without rebate, either
directly or indirectly, and that no deductions have been made either directly or indirectly from the full
wages eamed, other than permissible deductions as set forth in 29 CFR Part 3; and
(3.) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe
benefits or cash equivalents for the classification of work performed, as specified in the applicable
wage determination incorporated into the contract.
D. The weekly submission of a properly executed certification set forth on the reverse side of Optional Form
WH-347 shall satisfy the requirements for submission of the "Statement of Compliance" required by
subparagraph C of this clause.
E. The falsification of any of the above certifications may subject the Contractor or subcontractor to civil or
criminal prosecution under Section 1001 of Title 18 and Section 3729 of Title 31 of the United States Code.
F. The Contractor or subcontractor .shall make the records required under subparagraph D available for
inspection, copying, or transcription by authorized representatives of HUD or its designee, HND, or the
Department of Labor and shall permit such representatives to interview employees during working hours on
the job. If the Contractor or subcontractor fails to submit the required records or to make them available,
HUD or its designee may, after written notice to the Contractor, take such action as may be necessary to
cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit
the required records upon request or to make such records available may be grounds for debarment action
pursuant to 29 CFR 5.12.
G. Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they
performed when they are employed pursuant to and individually registered ina bona fide apprenticeship
program registered with the U.S. Department of Labor, Employment and Training Administration, Bureau of
Apprenticeship and Training, or with a State Apprenticeship Agency recognized by the Bureau, or if a person
is employed in his or her first 90 days of probationary employment as an apprentice in such an
apprenticeship program, who is not individually registered in the program, but who has been certified by the
Bureau of Apprenticeship and Training or a State Apprenticeship Agency (where appropriate) to be eligible
for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job
Page 28 of 31
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HND Form 402
;' (Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
site in any craft classification shall not be greater than the ratio permitted to the Contractor as to the entire
work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is
not registered or otherwise employed as stated in this paragraph, shall be paid not less than the applicable
wage rate on the wage determination for the classification of work actually performed. In addition, any
apprentice performing work on the job site in excess of the ratio permitted under the registered program shall
be paid not less than the applicable wage rate on the wage determination for the work actually performed.
Where a contractor is performing construction on a project in a locality other than that in which its program is
registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in
the Contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at
not less than the rate specified in the registered program for the apprentice's level of progress, expressed as
a percentage of the joumeyman hourly rate specified in the applicable wage determination. Apprentices shall
. . be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship
program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on
the wage determination for the applicable classification. If the Administrator of the Wage and Hour Division
determines that a different .practice prevails for the applicable apprentice classification, fringes shall be paid
in accordance with that determination. In the event the Bureau of Apprenticeship and Training, or a State
Apprenticeship Agency recognized by the Bureau, withdraws approval of an apprenticeship program, the
Contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for
the work performed until an acceptable program is approved.
H. Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the
predetermined rate for the work. performed unless they are employed pursuant to and individually registered
in a program which has received prior approval, evidenced by formal certification by the U.S. Department of
Labor, Employment and Training Administration. The ratio of trainees to joumeymen on the job site shall not
, be greater than permitted under the plan approved by the Employment and Training Administration. Every
trainee must be paid at not less than the rate specified in the approved program for the trainee's level of
progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage
determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee
program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of
fringe benefits listed in the wage determination unless the Administrator of the Wage and Hour Division
determines that there is an apprenticeship program associated with the corresponding journeyman wage rate
in the wage determination which provides for less than full fringe benefits for apprentices. Any employee
listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the
Employment and Training Administration shall be paid not less than the applicable wage rate in the wage
determination for the classification of work actually performed. In addition, any trainee performing work on
the job site in excess of the ratio permitted under the registered program shall be paid not less than the
applicable wage rate in the wage determination for the work actually performed. In the event the Employment
and Training Administration withdraws approval of a training program, the Contractor will no longer be
permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an
acceptable program is approved. .
I. Equal employment opportunity. The utilization of apprentices, trainees, and journeymen under this clause
shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as
amended, and 29 CFR Part 30.
J~ Compliance With Copeland Act requirements. The Contractor shall comply with the requirements of 29 CFR
Part 3, which are hereby incorporated by reference in this contract.
K. Contract termination; debarment. A breach of this contract clause may be grounds for termination of the
contract and for debarment as a Contractor and a subcontractor as provided in 29 CFR 5.12.
L. Compliance with Davis-Bacon and related Act requirements. All rulings and interpretations of the Davis-
Bacon and related Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by reference in this
contract. .
Page 29 of 31
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CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
HND Form 402
. ..r (Rev. 06/03)
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28.
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M. . Disputes concerning labor standards. Disputes-arising out of the labor standards provisions of this clause
shall not be subject to the general dispute clause of this contract. Such disputes shall be resolved in
accordance with the procedures of the Department of Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes
within the meaning of this clause include disputes between the Contractor (and any of its subcontractors)
and HND, HUD, the U.S. Department of Labor, or the employees or their representatives.
25. Certification of eligibility.
A. By entering into this contract, the Contractor certifies that neither it (nor he or she) nor any person or firm
who has an interest in the Contractor's firm is a person or firm ineligible to be awarded contracts by the
United States Govemment by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5. 12(a)(1).
B. No part of this contract shall be subcontracted to any person or firm ineligible to be awarded contracts by the
United States Government by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5. 12(a)(1).
C. The penalty for making false statements is prescribed in the U. S. Criminal Code, 18 U.S.C. 1001.
26. Contract Work Hours and Safety Standards Act.
As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards.
A. Overtime requirements. No contractor or .subcontractor contracting for any part of the contract work which
may require or involve the employment of laborers or mechanics, including watchmen and guards, shall
require or permit any such laborer or mechanic in any workweek in which the individual is employed on such
work to work in excess of 40 hours in such workweek unless such laborer or mechanic receives
compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in
excess of 40 hours in such workweek.
B. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the provisions
set forth in subparagraph J (1) of this clause, the Contractor and any subcontractor responsible therefor shall
be liable for the unpaid wages. In addition, such Contractor and subcontractor shall be liable to the United
States (in the case of work done urider contract for the District of Columbia or a territory, to such District or to
such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each
individual laborer or mechanic (including watchmen and guards) employed in violation of the provisions set
forth in subparagraph J (1) of this clause, in the sum of $10 for each calendar day on which such individual
was required or permitted to work in excess of the standard workweek of 40 hours without payment of the
overtime wages required by provisions set forth in subparagraph J (1) of this clause.
.~~
C. Withholding for unpaid wages and liqUidated damages. HUD or its designee shall upon its own action or .
upon written request of an authorized representative of the Department of Labor withhold or cause to be
withheld, from any moneys payable on account of work performed by. the Contractor or subcontractor under
any such contract or any Federal contract with the same prime Contractor, or any other Federally-assisted
contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime
Contractor such sums as may be determined to be necessary to satisfy any liabilities of such Contractor or
subcontractor for unpaid wages and liquidated damages as provided in the provisions set forth in
subparagraph J (2) of this clause.
27.
Subcontracts. The Contractor or subcontractor shall insert in any subcontracts all the provisions contained in this
clause, and such other clauses as HUD or its designee may by appropriate instructions require, and also a clause
requiring the subcontractors to include these provisions in any lower tier subcontracts. The prime Contractor shall
be responsible for the compliance by any subcontractor or lower tier subcontractor with all these provisions.
Labor Standards - Non-routine Maintenance. Not applicable.
Page 30 of 31
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HND Form 402
(Rev. 06103)
CONTRACT DOCUMENTS -- CONSTRUCTION
GENERAL CONDITIONS
Project #:
CDBG-03036
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29. Non-Federal Prevailing Wage Rates.
A. Any prevailing wage rate (including basic hourly rate and any fringe benefits), determined under State law to
be prevailing, with respect to any employee in any trade or position employed under the contract, is
inapplicable to the contract and shall not be enforced against the Contractor or any subcontractor, with
respect to employees engaged under the contract whenever either of the following occurs:
(1.) Such non-Federal prevailing wage rate exceeds:
(a) the applicable wage rate determined by the Secretary of Labor pursuant to the Davis-Bacon Act
(40 U.S:C. 276a et seq.) to be prevailing in the locality with respect to such trade;
(b) an applicable apprentice wage rate based thereon specified in an apprenticeship program
registered with the Department of Labor or a DOL-recognized State Apprenticeship Agency;
(e) an applicable trainee wage rate based thereon specified in a DOL-certified trainee program.
B. Such non-Federal prevailing wage rate, exclusive of any fringe benefits, exceeds the applicable wage rate
determined by the Secretary of HUD to be prevailing in the locality with respect to such trade or position.
,
( ,)
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Page 31 of 31
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HND Form 403 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06103) SUPPLEMENTAL CONDITIONS CDBG-03036
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f. Approved Equal:
Whenever a product is defined in this invitation by trade name and catalogue number qf a
manufacturer or contractor, the term "or approved equal", if not inserted therewith shall be implied.
Any reference to a particular manufacturer1s product either by trade name or by limited description
is solely for the purpose of more clearly indicating the minimum standard of quality desired, except
where a "no substitute". is requested. When a "no substitute" is requested. the housing authority
will consider bids for the referenced product only. The term "or approved equal" is defined as
meaning any other make which, in the sole opinion of HND, is of such character, quality and
performance equivalence as to meet the standard of quality of products specified for which it is to
be used equally as well as that specified. The bidder quoting on a product other than the
referenced product shall furnish complete identification on the bid form of the product he is
offering by trade name, brand and/or model number. The bidder shall also furnish with hislher bid,
descriptive literature and data with respect to the substitute product he proposes to furnish.
Bidders offering a substitute shall also indicate any known specification deviations from the
referenced product.
2. Delivery:
All materials and products shall be delivered F.O.B. Destination with any delivered duty paid
(DDP). The contractor agrees to bear the risk of loss, injury or destruction of products ordered
which occur prior to receipt by the Owner and acceptance by HND. Such loss, injury or destruction
shall not release contractor from any contractual obligations. All products must be delivered within
the time period specified on the order. Time is of the essence and, in addition to any other
remedies contained in this invitation for bid, the order is subject to termination for failure to deliver
as specified. In the event of termination, HND shall have the right to purchase in the open market
a corresponding quantity of the products and the contractor shall be responsible for any excess
cost to the Owner and HND.
3. .Inspection and Rejection:
No product received by HND shall be deemed accepted until HND has had a reasonable
opportunity to inspect said product. Any product, which is discovered to b~ defective or fails to
conform to the specifications may be rejected upon initial inspection or at any later time if the
defects contained in the products or the noncompliance with the specifications were not
reasonably ascertainable upon the initial inspection. The decision of HND shall be final. It shall
thereupon become the duty of the contractor to remove rejected products from the premises
without expense to HND within fifteen (15) days notification. Rejected products left longer than
fifteen (15) days will be regarded as abandoned, and HND shall have the right to dispose of them
as its own property and shall retain that portion of the proceeds of any sale which represents HND
costs and expenses in regard to the storag~ and sale of the products. Upon notice of rejection, the
contractor shall immediately replace all such rejected products with others conforming to the
specifications and which are not defective. If the contractor fails, neglects or refuses to do so,
HND shall then have the right to purchase in the open market a corresponding quantity of such
products, and deduct from any monies due or that may thereafter become due to the contractor,
the difference between the price stated in the contract or purchase order and the actual cost
thereof to HND.
Page 1 of 3
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HND Form 403 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) . SUPPLEMENTAL CONDITIONS CDBG-03036
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t. HND Approval of Subcontracts.
A. Any proposed subcontracts shall be disclosed in Contractor's bid submission. Contractor shall
furnish such written information as HND may require concerning the proposed subcontractor,
together with the proposed subcontractor's Non-Collusion Affidavit in the form prescribed by
HND within 5 days of HND request for such information. Any objection shall be expressed in
writing by HND within ten (10) days after receipt.
B. HND may, without claim for extra cost by the contractor, disapprove any subcontractor for
cause on the basis of its own determination or because of the fact that the proposed
subcontractor is listed as ineligible to receive awards of contracts from the United States on a
current HND list or list furnished by HUD.
C. Nothing contained in the contract shall create any contractual relation between any
subcontraCtor and HND.
5. Withholding for damages. HND may withhold, or cause to be withheld, from any monies payable
for acceptable work performed by the. contractor or subcontractor, damages caused by the
contractor or subcontractor, or other claims against the contractor or subcontract such sums as
may be determin~d to be necessary to satisfy any liabilities of such contractor or subcontractor.
6. Hold Harmless. It is understood and agreed that contractor shall be deemed and considered an
independent contractor in respect. to the work covered by this Agreement, and shall assume all
risk and responsibility for casualties of every description in connection with the work which can be
attributed either directly or indirectly to the contractor. Contractor itself, its successors, assigns,
heir, executors and administrators, agrees to indemnify, defend and save harmless the Owner and
HND, all its officers and subordinates:
A. from all suits and actions of every nature brought against HND or any of them for or on
account of any damage or loss sustained by HND, and does agree to pay any and all such
damages including costs of litigation and counsel fees whether defended by HND or
contractor; and
B. if the contractor is required to enter premises owned, leased, occupied by or under the control
of the Owner during the performance. of this contract, the contractor shall indemnify and hold
harmless both the Owner and HND, its officers and employees, from any loss, cost, damage
expense or liability by reason of property damage, or personal injury, including death, of
whatsoever nature or kind arising out of as a result of such performance, whether arising out of
actions of the contractor or any of its employees, subcontractor, and lower tier subcontractors.
It is not the intention of this contract or anything herein provided to confer a third party
beneficiary right or action upon any person whatsoever and nothing herein before or herein
after set forth shall be construed so as to confer upon any person other than the Owner and
HND a right of action either under this contractor or in any manner whatsoever.
Page 2 of 3
HND Form 403 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) SUPPLEMENTAL CONDITIONS CDBG-03036
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,
I. Taxes, Industrial Laws and Benefits. In all matters relating to this contract, the contractor shall
be acting as an independent contractor. Neither the contractor nor any of the persons furnishing
materials or performing work or services which are required by this. contract are employees of
HND within the meaning of or the application of any federal, or state unemployment insurance
law, or other social security, or any workmen's compensation, industrial accident law, or other
industrial or labor laws. At its own expense, the contractor shall comply. with such laws and
assume all obligations imposed by anyone or more of such laws with respect to this contract. In
addition, contractor shall be liable for the payment of all federal, state and local taxes, and any
special assessments.
8. No Waiver of Conditions. Failure of HND to insist .on strict performance shall not constitute a
waiver of any of the provisions of this contract or waiver of any default of the .contractor. .
9. Severability. If any provision of this contract, or any application thereof to any person or
circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this
contract which can be given effect without the invalid provisions or application, and to this end the
provisions of this contract are severable.
O. Architect. Architectural and Engineering services for this projectwill be provided by the Augusta-
. Richmond County Public Works Department.
Page 3 of 3
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HND Form 404 CONTRACT DOCUMENlTS -- CONSTRUCTION Project #:
(Rev. 06103) ADDITIONAL SUPPLEMENTAL CONDITIONS CDBG-03036
~ it.
J. Employment, Training~ and Contracting Opportunities for Low-Income Persons, Section 3
of the Housing and Urban Development Act of 1968.
The work to be performed under this contract is subject to the requirements of Section 3 of the
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) (Section 3). The purpose of
Section 3 is to ensure that employment and other economic opportunities generated by HUD-
assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low-
and very low-income persons, particularly persons who are recipients of HUD assistance for
housing.
2. Employment Opportunities Generated By Section 3 Covered Assistance.
All employment opportunities generated by the expenditure of Section 3 covered public and Indian
housing assistance (Le., operating assistance, development assistance and modernization
assistance, as described in Section 135.3(a)(1)). With respect to Section 3 covered housing and
community development assistance, this term means all employment opportunities arising in
connection with Section 3 covered projects (as described in Section 135.3(a)(2)), including
management and administrative jobs connected with the Section 3 covered project. Management
and administrative jobs include architectural, engineering or related professional services required
to prepare plans, drawings, specifications, or work write-ups; and jobs directly related to
administrative support of these activities, e.g., construction manager, relocation specialist, payroll
clerk, etc. '
3. Definitions:
A. Section 3 resident means:
(1) A public housing resident; or
(2) An individual who resides in the metropolitan area or non-metropolitan county in which the
Section 3 covered assistance is expended, and who is:
(a) A low-income person, as this term is defined in Section 3(b)(2) of the 1937 Act (42
U.S.C. 1437a(b)(2)). Section 3(b)(2) of the 1937 Act defines this term to mean
families (including single persons) whose incomes do not exceed 80% of the median
income for the area, as determined by the Secretary, with adjustments for smaller
and larger families, except that the Secretary may establish income ceilings higher or
lower than 80% of the median for the area on the basis of the Secretary's findings
that such variations are necessary because of prevailing levels of construction costs
or unusually high or low-income families; or
(b) A very low-income person, as this term is defined in Section 3(b)(2) of the 1937 Act
(42 U.S.C. 1437a(b)(2)). Section 3(b)(2) of the 1937 Act (42 U.S.C. 1437a(b)(2))
defines this term to mean families (including single persons) whose incomes do not
exceed 50% of the median family income for the area, as determined by the
Secretary with adjustments for smaller and larger families, except that the Secretary
may establish income ceilings higher or lower than 50% of the median for the area on
the basis of the Secretary's findings that such variations are necessary because of
unusually high or low family incomes.
Page 1 of 5
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HND Form 404 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06103) ADDITIONAL SUPPLEMENTAL CONDITIONS CDBG-03036
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(c) A person seeking the training and employment preference provided by Section 3
bears the responsibility. of providing evidence, if requested, that he/she is eligible for
the preference. Section 8 assistance means assistance provided under Section 8 of
the 1937 Act (42 U.S.C. 1437f) pursuant to 24 CFR part 882, subpart G.
B. Section 3 business concern means a business concern, as defined in this Section:
(1) That is 51 percent or more owned by Section 3 residents; or
(2) Whose permanent, full-time employees include persons, at least 30 percent of whom are
currently Section 3 residen~s, or within three years of the date of first employment with the
business concern were Section 3 residents; or
(3) That provides evidence of a commitment to, subcontract in excess of 25 percent of the
dollar award of all subcontracts to be awarded to business concerns that meet the
qualifications set forth in paragraphs (1) or (2) in this definition of "Section 3 business
concern."
C. Subcontractor means any entity (other than a person who is an employee of the contractor)
which has a contract with a contractor to undertake a portion of the contractor's obligation for
the performance of work generated by the expenditure of Section 3 covered assistance, or
. arising in connection with a Section 3 covered project.
D. Section 3 clause means the contract provisions set forth in Sec. 135.38.
(/c-') E. Section 3 covered activity means any activity that is funded by Section 3 covered assistance
.~__ r public and Indian housing assistance.
4. Responsibilities of the Augusta-Richmond County Housing & Neighborhood Development
Department (HND).
HND has the responsibility to comply with Section 3 in its own operations, and ensure compliance
in the operations of its contractors and subcontractors. This responsibility includes but may not be
necessarily limited to:
A. Implementing procedures designed to notify Section 3 residents about training and
employment opportunities generated by Section 3 covered assistance and Section 3 business
concerns about contracting opportunities generated by Section 3 covered assistance;
B. Notifying potential contractors for Section 3 covered projects of the requirements of this
part, and incorporating the Section 3 clause in all solicitations and contracts;
C. Facilitating the training and employment of Section 3 residents and the award of contracts
to Section 3 business concerns by undertaking activities to reach the goals set forth in Section
135.30;
D. Assisting in obtaining the compliance of contractors and subcontractors with the requirements
of this part, and refraining from entering into any. contract with any contractor where the
recipient has notice or knowledge that the contractor has been found in violation of the
regulations in 24 CFR part 135; and
Page 2 of 5
HND Form 404 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) ADDITIONAL SUPPLEMENTAL CONDITIONS CDBG-03036
0" ,=.i
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E. Documenting actions taken to comply with the requirements of this part, the results of actions
taken and impediments, if any. .
(-~)
5.. Employment and Contracting with Residents, Resident-owned Businesses, Small and
. Other Businesses.
A. General. HND strongly supports a policy of contracting and providing employment
opportunities with residents and resident-owned businesses. Accordingly, agencies are
strongly encouraged to contract with residents and resident-owned businesses whenever
possible.
B. Section 3 of the HUD Act of 1968.
(1) This law requires that HND make an effort to ensure that individuals or firms located in or
owned in substantial part by persons residing in the area of a project are used when
possible. The regulations describing this program are in 24 CFR Part 135 and the contract
form includes a clause implementing this requirement.
(2) Employment and training opportunities for pre-apprentices, apprentices and other training
programs for residents will assist HND in meeting resident employment, training, and local
contracting objectives under Section 3. Further guidance is provided in Federal Register
Notice, dated October 6, 1992 and HUD Notice 92-01-SL (See Appendix 32).
(3) HUD Handbook 8023.1, Implementing Section 3 of the Housing and Urban Development
Act of 1966 provides guidan"ce regarding compliance with Section 3. Some of the important
provisions include but are not limited to the following: .
(a) Solicitations, regardless of the method, must advise prospective contractors of the
Section 3 requirements.
(b) The Section 3 contract clause must be included in all covered contracts.
(c) HND and its contractors must make a good faith effort to provide, to the greatest
extent feasible, training and employment to lower income residents of the unit of local
government in connection with the work on an assisted project. In filling vacancies,
HND and its contractors may prominently post notices at the project site and in the
HND Office and may contact. resident councils and. resident management
corporations, in addition to their other recruitment efforts, to meet the requirements of
Section 3.
(d) HND and its contractors must. make a good faith effort to award contracts, to the
greatest extent feasible, to businesses located in or owned in substantial part by
persons residing in Augusta-Richmond County. In meeting this requirement HND
should consider use of the alternative procurement procedures at 24 CFR Part 963.
See paragraph 6 below.
(e) Contractors must make a good faith effort to award subcontracts to businesses
located in Augusta-Richmond County or substantially owned by persons residing in
Augusta-Richmond County.
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Page 3 of 5
HND Form 404 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06103) ADDITIONAL SUPPLEMENTAL CONDITIONS CDBG-Q3036
;. Resident-Owned Business.
A. HUD issued a final rule at 24 CFR Part 963 which allows HND to use an alternative
procure.ment process when contracting with businesses owned in substantial part by residents
(resident-owned businesses) for public housing services, supplies, or construction. As stated
in paragraph 5, HUD strongly encourages HND to contract with resident businesses to the
maximum extent feasible. This has been a proven strategy for moving low-income persons out
of poverty and dependency. The alternative procurement process is based on the established
procurement procedures and requirements set forth in HUD regulations at 24 CFR 85.36,. but
limits solicitation to resident-owned businesses. The purpose of this rule is to enhance the
economic opportunities available to 0 residents by facilitating the award of HND contracts to
resident-owned businesses that are capable of performing successfully under a proposed HND
contract at a reasonable price.
B. The alternative procurement process under 24 CFR 963 is as follows:
(1) HND prepares an independent cost estimate for the procurement.
(2) HND selects the appropriate method of procurement (small purchase, sealed bidding,
competitive proposals, or noncompetitive proposals).
(3) HND solicits a quotation or offer from one or more resident-owned business.
(4) HND receives bids from one or more resident-owned business and ensures that:
(a) the bidders have submitted the required certification regarding previous contracts
received under the alternative procurement process; and
(b) the total amount of such previous contracts is less than $500,000.
(c) HND performs a cost or price analysis of the bids received and determines the price
that would normally be paid for comparable supplies, services, or construction in the
project area.
(5) HND awards the contract to the most advantageous bidder, consistent with the evaluation
factors stated in the solicitation, provided that the price does not exceed the independent
cost estimate and the price. that would normally be paid for comparable supplies, services,
qr construction in the project area.
(6) HND documents the procurement file and complies with all other applicable procurement
requirements of 24 CFR 85.36 or 24 CFR 905.
7. Requirements of Bidders. All contractors must comply with Section 3. A bidder claiming a
Section 3 preference must qualify as a Section 3 Business Concern or a Resident-owned
Business. The bidder must submit the Section 3 Business Concern Certification with the bid to
qualify. Add,itionally, each contractor must, to the greatest extent feasible, hire a Section 3 eligible
resident when a new hire possibility occurs.
Page 4 of 5
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HND Form 404 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) ADDITIONAL SUPPLEMENTAL CONDITIONS CDBG-03036
d. Eligibility .for preference. A Section 3 resident seeking the preference In training and
employment provided by this part shall certify, or submit evidence to the recipient contractor or
subcontractor, if requested, that the person is a Section 3 resident; as defined in Section 135.5.
(An example of evidence of eligibility for the preference is evidence of receipt of public assistance,
or evidence of participation in a public assistance program.)
"
9. Eligibility for employment. Nothing in this part shall be construed to require the employment of a
Section 3 resident who does not meet the qualifications of the position to be filled.
10. Preference in the award of Section 3 covered contracts. Preference in the award of Section 3
covered contracts that are awarded under a sealed bid process may be provided as follows:
A. Bids shall be solicited from all businesses (Section 3 business concerns, and non-Section 3
business concerns). An award shall be made to the qualified Section 3 business concern with
the highest priority ranking and wit~ the lowest responsive bid if that bid:
(1 ) Is within the maximum total contract price established in the contracting party's budget for
the specific project for which bids are being taken: and
(2) Is not more than "X" higher than the total bid price of the lowest responsive bid from any
responsible bidder. "X" is determined as follows:
x = Lesser of:
When the lowest responsive bid is less than $100,000. 10% of that bid or $9,000.
When the lowest responsive bid is:
At least $100,000, but less than $200,000 9% of that bid, or $16,000
At least $200,000, but less than $300,000 8% of that bid, or $21,000
At least $300,000, but less than $400,000 7% of that bid, or $24,000
At least $400,000, but less that $500,000 6% of that bid, or $25,000
At least $500,000, but less than $1 million 5% of that bid, or $40,000
At least $1 million, but less than $2 million 4% of that bid, or $60,000
At least $2 m.iIIion, but less than $4 million 3% of that bid, or $80,000
At least $4 million, but less than $7 million 2% of that bid, or $105,000
$7 million or more 1 1/2% of the lowest responsive bid with no dollar limit
B. If no responsive bid by a Section 3 business concern meets the requirements of paragraph A.
(1) of this Section, the contract shall be awarded to a responsible bidder with the lowest
responsive bid.
Page 5 of 5
HND Form 405 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) SPECIAL CONDITIONS CDBG-03036
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j. SCOPE OF WORK:
To perform all labor and provide all material necessary for the rehabilitation and re-roofing of Henry
H. Brigham Community Center located at 2463 Golden Camp Road, Augusta, Georgia 30906.
2. QUALIFICATIONS OF THE CONTRACTOR:
Roof contractor shall be engaged in the installation of roof systems and repair of roof systems for at
least ten (10) years. Contractor shall also use own employees, with no independent contractors on
the job. Roofing contractor shall provide owner employment verification upon request.
3. CONTINUING OPERATIONS:
The Henry H. Brigham Community Center is to remain open for the duration of construction. Due to
the nature of the stored materials, it is essential that the contractor take appropriate precautions to
pr~vent damage or access to the facility.
4. WARRANTIES:
A. METAL ROOF:
The contractor must furnish a two-year (2) labor warranty as well as a ten-year (10) renewable
manufacturer's warranty. A copy of the manufacturer's warranty on the proposed roof system
should be included with this bid. A copy of the manufacturer's literature for the proposed roof
system shall also be included.
B. SHINGLE ROOF:
The contractor must furnish a two-year (2) labor warranty as well as a ten-year (10) renewable
manufacturer's Warranty. A. copy of the manufacturer's warranty on the proposed roof system
should be included with this bid. A copy of the manufacturer's literature for the proposed roof
system shall also be included.
5. SUBSTANTIAL COMPLETION:
A. The metal roof rehabilitation must be completed by December 5, 2003.
B. The shingle roof replacement must be completed by December 15, 2003.
Page 1 of 2
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HND Form 405 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) SPECIAL CONDITIONS CDBG-03036
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o. MISCELLANEOUS:
A.. All work shall be in compliance with all applicable codes and regulations.
B. The contractor is to clean up the job site on a daily basis and is not to leave construction
debris lying about.
C. The contractor is to provide means to dispose of construction waste.
D. The contractor will have access to existing water and electrical service.
E. The contractor will have access to restroom facilities for their workforce
.page 2 of 2
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HND Form 406 CONTRACT DOCUMENlTS -- CONSTRUCTION Project #:
(Rev. 06/03) CONTRACTOR REPORTING REQUIREMENTS CDBG-03036
rhere are a variety of information submittals, form processing and report generation efforts required
to award the contract and throughout the course of administering this contract. This part is intended
to provide the potential bidder with a brief but thorough list of these requirements. You may request
copies of reporting and documentation forms from HND during the bidding process by calling the
HND office at (706) 821-1797. HND reserves the right to revise the reporting and documentation
requirements at any time.
I
Pre-Construction Admi Inistrative Requirements.
1. Assurance of Completion.
A. The successful bidder shall furnish an assurance of completion prior to the execution of any
contract. The form of assurance of completion, as defined in Instruction to Bidders, is required
to be submitted five (5) days prior to the scheduled pre-construction conference. Bonds must
be obtained from guarantee or surety companies acceptable to the U:S. Government and
authorized to do business in the State of Georgia. Individual sureties will not be considered.
B. Each bond shall clearly state the rate of premium and the total amount of premium charged.
The current power of attorney for the person who signs for the surety company must be
attached to the bond. The effective date of the power of attorney shall not precede the date of
the bond. The effective date of the bond shall be on or after the execution date of the contract.
C. Failure by the successful bidder to obtain the required assurance of completion within the time
specified, or within such extended period as HND may grant based upon reasons determined
adequate by HND, shall render the bidder ineligible for award. HND may then either award the
contract to the next lowest responsible bidder or solicit new bids. HND may retain the ineligible
bidder's bid guarantee. ' .
2. Pre-construction Conference. Prior to the award of a contract under this solicitation and prior to
the start of work, the successful bidder will be required to attend a pre-construction conference
with representatives of the Owner, HND and its architecUengineer, and other interested parties
convened by HND. The conference will serve to acquaint the participants with the general plan of
the construction operation and all other requirements of the contract (e.g., Section 3, Equal
Employment Opportunity, Labor Standards). HND will provide the successful bidder with the date,
time, and place of the conference. The Contract shall be executed within 3 days following the
completion of the Pre-construction Conference.
3. Certificates of Insurance.
A~ In accordance with the General Conditions, shall be submitted five (5) days prior to the
scheduled pre-construction conference. The Owner is to be added as an additionally named
insured to the Contractor's Comprehensive General Liability and Automobile Liability
Coverage. The amount required is not less than $1,000,000.00 per occurrence for General
Liability and $500,000.00 for Automobile Liability.
Page 1 of 8
HND Form 406 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev, 06/03) CONT.RACTOR REPORTING REQUIREMENTS CDBG-03036
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B. Additionally, before commencing work, the Contractor shall furnish HND with a certificate of
insurance evidencing that Builder's Risk (fire and extended coverage) Insurance on all work in
place and/or materials stored at the building site(s), including foundations and building
equipment, is in force. The Builder's Risk Insurance shall be for the benefit of the Contractor
and the Owner as their interests may appear and each shall be named in the policy or policies
as an insured. The Contractor in installing equipment supplied by the Owner shall carry
insurance on such equipment from the time the Contractor takes possession thereof until the
Contract work is accepted by HND. The Builder's Risk Insurance need not be carried on
excavations, piers, footings, Of foundations until such time as work on the super-structure is
started. It need not be carried on landscape work. Policies shall furnish coverage at all times
for the full cash value of all completed construction, as well as materials in place and/or stored
at the site(s), whether or not partial payment has been made by HND. The Contractor may
terminate this insurance on buildings as of the date taken over for occupancy by the Owner.
The Contractor is not required to carry Builder's Risk . Insurance for modernization work that
does not involve structural alterations or additions and where the Owne~s existing fire and
extended coverage policy can be endorsed to include such work.
C. All insurance shall be carried with companies that are financially responsible and admitted to
do business in the State of Georgia. If any such insurance is due to expire during the
construction period, the Contractor (including subcontractors) shall not permit the coverage to
lapse and shall furnish evidence of coverage to HND. All certificates of insurance, as evidence
of coverage, shall provide that no coverage may be canceled or non-renewed by the insurance
. company until at least 30 days prior written notice has been given to HND.
D. Certificates of the Contractor's Insurance shall be filed with HND and shall be subject to their
approval for adequacy of protection. These certificates shall contain a provision that coverage
afforded under the policies will not be canceled without a minimum of thirty- (30) days prior
written notice to the Augusta-Richmond County Housing & Neighborhood Development
Department.
4. Construction Progress Schedule.
A. A Construction Progress Schedule shall be submitted five (5) days prior to the scheduled pre-
construction conference. The Contractor shall submit for approval three copies of a
practicable schedule showing the order in which the Contractor proposes to perform the work,
and the dates on which the Contractor contemplates starting and completing the several
salient features of the work (including acquiring labor, materials, and equipment). The
schedule shall be in the form of a progress chart of suitable scale to indicate appropriately the
percentage of work scheduled for cpmpletion by any given date during the period. .If the
Contractor fails to submit a schedule within the time prescribed, HND may withhold approval of
progress payments or take other remedies under the contract until the Contractor submits the
required schedule.
Page 2 of 8
HND Form 406 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) CONTRACTOR REPORTING REQUIREMENTS CDBG-03036
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B. The Contractor shall enter the actual progress on the chart as required by HND, and
immediately deliver three copies of the annotated schedule to HND. If HND, upon the basis of
inspection conducted according to the General Condition clause entitled "Inspection and
Acceptance of Construction," determines that the Contractor is not meeting the approved
schedule, the Contractor shall take steps necessary to improve its progress, including those
ttiat may be required by HND, without additional cost to the HND. In this circumstance, HND
may require the Contractor to. increase the number of shifts, overtime operations, days of work,
and/or the amount of construction plant, and to submit for approval any supplementary
schedule or schedules in chart form as HND deems necessary to demonstrate how the
approved rate of progress will be regained.
C. Failure of the Contractor to comply with the requirements of HND under this clause shall be
grounds for a determination by HND that the Contractor is not prosecuting the work with
sufficient diligence to ensure completion within the time specified in the Contract. Upon making
this determination, HND may terminate the Contractor's right to proceed with the work, or any
separable part of it, in accordance with the "Default" clause of this contract.
5. Contractor's own forces work equivalent.
The Contractor shall perform on the site, and with its own forces work equivalent to at least 12%
of the total amount of work to be performed under the contract. Five (5) days prior to the
. scheduled pre-construction conference, the Contractor shall submit a certification explaining how
the Contractor will perform at least 12% of the total amount of work.
6. Contractor's obligation to directly superintend the work. .
At all times during performance of this contract and until the work is completed and accepted, the
Contractor shall directly superintend the work or assign and have on the work site a competent
superintendent who is satisfactory to HND and has authority to act for the Contractor. Five (5)
days prior to the scheduled pre-construction conference, the Contractor shall submit the following
information for approval by HND:
A. Superintendent's Name
B. Superintendent's Work History
C. Superintendent's Education
7. Schedule of Amounts for' Contract Payments. Five (5) days prior to the scheduled pre-
construction conference, the Contractor shall submit a completed and executed Schedule of
Amounts for Contract Payments. This form is only required to be completed once; thereafter, a
copy shall accompany each Pay Request.
Page 3 of 8
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HND Form 406 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) CONTRACTOR REPORTING REQUIREMENTS CDBG-03036
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Construction Phase Reporting Requirements
The Contractor is advised of the following Reporting and Administrative requirements required
during the course of construction activities:
1. Labor Provision Requirements:
. A. The Contractor is required to submit weekly Certified Payroll Form WH-347 for the General
Contractor and each Subcontractor.
B. The Contractor is required to post in a conspicuous place the Secretary of Labor's Wage
Poster and Wage Determination.
C. The Contractor is required to report in writing worker disputes that the Contractor cannot
resolve informally.
2. Contract Progress Payments:
A. Schedule of Amounts for Contract Payments. A copy of the. Schedule of Amounts for
Contract Payments previously approved by HND and/or the HND architect.
B. Pay Request. Required to be completed and submitted for each Pay Request. Only one copy
with original signatures need be submitted.
3. Change Order.
Required to be completed and submitted with the Pay Request only if there have been any
approved change orders issued on the project.
4. Schedule of Materials Stored.
Required to be completed and submitted with Pay Request only if the Contractor wishes to be
paid for inventory purchased prior to that inventory being incorporated into the work. Supporting
invoices must accompany any Stored Materials Request. The HND Rehabilitation Inspector
will inspect the facility where the materials are stored to verify their existence. Each Subcontractor
requesting payment for materials stored must also complete this form.
5. Summary of Materials Stored. .
Required to be completed and submitted with each Pay Request, which has a completed
"Schedule of Materials Stored".
Page 4 of 8
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HND Form 406 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) CONTRACTOR REPORTING REQUIREMENTS CDBG-03036
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.J. Construction Progress Schedule.
The Contractor shall enter the actual progress on the chart as compared to the originally
submitted and approved schedule showing the order in which the Contractor proposes to perform
the work, and the dates on which the Contractor contemplates starting and completing the several
salient features of the work (including acquiring labor, materials, and equipment).
7. Section 3 Summary Report, Economic Opportunities for Low- and Very Low-Income
Persons, form HUD-60002.
The Contractor is required to submit report form HUD-60002, Section 3 Summary Report,
Economic Opportunities for Low- and Very Low-Income Persons, with each request for contract
payments. Please note that this is the same report used by HND to report annual
accomplishments regarding employment and other economic opportunities provided to low- and
very low-income persons under Section 3 of the Housing and Urban Development Act of 1968.
8. Shop Drawings and Test Results.
A. "Shop drawings" means drawings, submitted to HND or its architect by the Contractor,
subcontractor, or any lower tier subcontractor, showing in detail (1) the propos.ed fabrication
and assembly of structural elements and (2) the installation (Le., form, fit, and attachment
details) of materials of equipment. It includes drawings, diagrams, layouts, schematics,
descriptive literature, illustrations, schedules, performance and test data, and similar materials
furnished by the Contractor to explain in detail. specific portions of the work required by the
contract. HND may duplicate, use, and disclose in any manner and for any purpose shop
drawings delivered under this contract.
B. The Contract shall submit shop drawings and test results at least 15 days before the
scheduled installation or work concerning the shop drawing or test results. The Contractor
shall coordinate all such drawings, and review them for accuracy, completeness, and
compliance with other contract requirements and shall indicate. its approval thereon as
evidence of such coordination and review. Shop drawings. submitted to HND without evidence
of the Contractor's approval may be returned for resubmfssion. HND will indicate an approval
or disapproval of the shop drawings and if not approved as submitted shall indicate HND's
reasons therefor. Any work done before such. approval shall be at the Contractor's risk.
Approval by HND shall not relieve the Contractor from responsibility for any errors or
omissions in such drawings, nor from responsibility for complying with the requirements of this
contract.
C. The Contractor shall submit to HND for approval four copies (unless otherwise indicated) of all
shop drawings as called for under the various headings of these specifications. Three sets
(unless otherwise indicated) of all shop drawings, will be retained by HND and one set will be
returned to the Contractor. As required by HND, the Contractor, upon completing the work
under this contract, shallfumish a complete set of all shop drawings as finally approved. These
drawings shall show all changes and revisions made up to the time the work is completed and
accepted.
Page 5 of 8
.::..z.
HND Form 406 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) CONTRACTOR REPORTING REQUIREMENTS CDBG-03036
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j. Construction Progress Schedule.
The Contractor shall enter the actual progress on the chart as compared to the originally
submitted and approved schedule showing the order in which the Contractor proposes to perform
the work, and the dates on which the Contractor contemplates starting and completing the several
salient features of the work (including acquiring labor, materials, and equipment).
7. Section 3 Summary Report, Economic Opportunities for Low- and Very Low-Income
. Persons, form HUD-60002.
The Contractor is required to submit report form HUD-60002, Section 3 Summary Report,
Economic Opportunities for Low- and .Very Low-Income Persons, with each request for contract
payments. Please note that this is the same report used by. HND to report annual
accomplishments regarding employment and other economic opportunities provided to low- and
very low-income persons under Section 3 of the Housing and Urban Development Act of 1968.
8. Shop Drawings and Test Results.
A. "Shop. drawings" means drawings, submitted to HND or its architect by the Contractor,
subcontractor,' or any lower tier subcontractor, showing in detail (1) the proposed fabrication
and assembly of structural elements and (2) the installation (Le.,' form, fit, and attachment
details) of materials of equipment. It includes drawings, diagrams, layouts, schematics,
descriptive literature, illustrations, schedules, performance and test data, and similar materials
furnished by the Contractor to explain in detail specific portions of the work required by the
contract. HND may duplicate, use, and disclose in any manner and for any purpose shop
drawings delivered under this contract.
B. The Contract shall submit shop drawings and test results at least 15 days before the
scheduled installation or work concerning the shop drawing or test results. The Contractor
shall coordinate all such drawings, and review them for accuracy, completeness, and
. compliance with other contract requirements and shall indicate its approval thereon as
evidence of such coordination and review. Shop drawings submitted to HN 0 without evidence
of the Contractor's approval may be returned for resubmission. HND will indicate an approval
or disapproval of the shop drawings and if not approved as submitted shall indicate HND's
reasons therefor. Any work done before such approval shall be at the Contractor's risk.
Approval by HND shall not relieve the Contractor from responsibility for any errors or
omissions in such drawings, nor from responsibility for complying with the requirements of this
contract.
C. The Contractor shall submit tq HND for approval four copies (unless otherwise indicated) of all
shop drawings as called for under the various headings of these specifications. Three sets
(unless otherwise indicated) of all shop drawings, will be retained by HND and one set will be
returned to the. Contractor. As required by HND, the Contractor, upon completing the work
under this contract, shall furnish a complete set of all shop drawings as finally approved. These
drawings shall show all changes and revisions made up to the time the work is completed and
accepted.
Page 5 of 8
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HND Form 406 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06103) CONTRACTOR REPORTING REQUIREMENTS CDBG-03036
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D., This clau.se shall be included in all subcontracts at any tier. It shall be the responsibility of the
Contractor to ensure that all shop drawings prepared by subcontractors are submitted to HND.
E. Failure of the Contractor to comply with the requirements of HND under this clause shall be
grounds for a determination by HND that the Contractor is not in compliance with the Contract.
Upon making this determination, HND may terminate the ContraCtor's right to proceed with the
work, or any separable part of it, in. accordance with the "Default" clause of this contract.
9. As-Built Drawings.
. A. liAs-built drawings," as used in this clause, means drawings submitted by the Contractor or
subcontractor at any tier to show the construction of a particular structure or work as actually
completed under the contract. "As-built drawings" shall be synonymous with "Record
drawings." As required by HND, the Contractor shall provide HND accurate information to be
used in the preparation of permanent as-built drawings. For this purpose; the Contractor shall
record on one set of contract drawings all changes from the -installations originally indicated,
and record final locations of. underground lines by depth from finish grade arid by accurate
horizontal offset distances to permanent surface improvements such as buildings, curbs, or
. edges of walks.
(- " B. This clause shall be included in all subcontracts at any tier. It shall be the responsibility of the
\~.~. ) Contractor to ensure that all as-built drawings prepared by subcontractors are submitted to
HND.
C. Failure of the Contractor to comply with the requirements of HND under this clause shall be
grounds fora determination by HND that the Contractor is not in compliance with the Contract.
This will result in HND withholding from the Contractor's final payment and/or retention an
amount of money sufficient to gather and/or reproduce the accurate information necessary to
~e used in the preparation of permanent as-built drawings.
O.Approval of equipment and materials.
A. The. Contractor shall obtain HND approval of the machinery and mechanical and other
equipment to be incorporated into the work. When requesting approval, the Contractor shall
furnish to HND the name of the manufacturer, the model number, and other information
concerning the performance, capacity, nature, and rating of the machinery and mechanical and
other equipment. When required by this contract or by HND, the Contractor shall also obtain
HND approval of the material or articles, which the Contractor contemplates incorporating into
the work. When requesting approval, the Contractor shall provide full information concerning
the material or articles. Machinery, equipment, material, and articles that do not have the
required approval shall be installed or used at the. risk of subsequent rejection.
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HND Form 406 -CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06103) -
CONTRACTOR REPORTING REQUIREMENTS CDBG-03036
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B. When required by the specifications or HND, the Contractor shall submit appropriately marked
samples (and certificates related to them) for approval at the Contractor's expense, with all
shipping charges pre-paid. The Contractor shall label, or otherwise properly mark on the
container, the material or. product represented, its place of origin, the name of the producer,
the Contractor's name, and the identification of the construction project for which the material
or product is intended to be used.
C. Certificates shall be submitted in triplicate, describing each sample submitted for approval and
certifying that the material, equipment or accessory complies with contract requirements. The
certificates shall include the name and brand of the product,. name of manufacturer, and the
location where produced.
D. Approval of a sample shall not constitute a waiver of HND right to demand full compliance with
contract requirements. Materials, equipment and accessories may be rejected for cause even
though samples have been approved.
,1. Use and Possession Prior to Completion. The Owner shall have the right to take possession of
or use any completed or partially completed part of the work. The request for Use and Possession
Prior to Completion shall be made by the Owner in writing to HND. Before taking possession of or
using any work, HND shall furnish the Contractor a list of items of work, remainfng to be performed
or corrected on those portions of the work that the Owner intends to take possession of or use.
However, failure of the Owner to list any item of work shall not relieve the Contractor of
responsibility for complying with the terms of the contract. The Owner's possession or use shall
not be deemed an acceptance of any work under the contract. While the Owner has such
possession or use, the Contractor shall be relieved of the responsibility for (1) the loss of or
damage to the work resulting from the Owner's possession or use, notwithstanding the terms of
the clause entitled "Permits and Codes" herein; (2) all maintenance costs on the areas
occupied; and, (3) furnishing heat, light, power, and water used in the areas occupied without
proper remuneration therefor. If prior possession or use by the Owner delays the progress of the
work or causes additional expense to the Contractor, HND shall make, an equitable adjustment in
the contract price or the time of completion, and the, contract shall be modified in writing
accordingly.
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HND Form 406 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) CONTRACTOR REPORTING REQUIREMENTS CDBG-03036
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Contract Close-out Reporting Requirements
After the Contractor has completed all the items noted on the fiND inspection punch list, the
Contractor may 'submit closing documents to HND. Closing documents shall consist of the
following:
1. The Contractor shall notify HND, in writing, as to the date when in its opinion all or a designated
portion of the work will be substantially completed and ready for inspection. If the state of
preparedness is as represented, HND will promptly arrange for the inspection.
2. Final Pay Request marked "FINAL" with all associated payment forms as explained above.
3. One original of the executed Final Waiver of Lien for the Contractor for each subcontractor and
all material suppliers.
4. Certificate of Occupancy, if required.
5. Any special warranty or guarantees required by the Technical Specifications. At a minimum, the
Contractor is required to provide a one-year workmanship warranty, in accordance with General
Conditions. This warranty may be in the form of a letter on company stationery, signed by an
authorized individual establishing the coverage period and the method of notification for covered
repairs. Other special equipment warranties shall be from the manufacturer.
6. An original completed copy of Contracto"'s Certificate and Release. This form must be
notarized.
7. An original completed copy of Owner's Certificate and Release. This form must be notarized.
8. Accurate and complete information to be used in the preparation of permanent as-built drawings.
For this purpose, the Contractor shall record on one set of contract drawings all changes from the
installations originally indicated, and record final locations of underground lines by depth from
finish gr!3de and by accurate horizontal offset distances to permanent surface improvements such
as .buildings, curbs, or edges of walks.
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HND Form 111 CONTRACT DOCUMENTS -- CONSTRUCTION Project #:
(Rev. 06/03) TECHNICAL SPECIFICA liONS CDBG-03030
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1. REHABIUTA TION OF METAL ROOF SYSTEM:
A. Preparation
(1) Clean surface with 3000-psi power washer, removing all ~aking, rust and debris.
(2) Replace approximately 3-5 deteriorated metal roof panels, each panel @ 3' x 20'.
B. Application - Hydro5top Premium Coat Roofing System
(1) Apply Stable Rust Primer as needed (approximately 8,200 sq. ft).
(2) At all vertical seams apply foundation coat and six-inch (6") fabric to the prepared area.
Embed HydroStop polyester fabric directly into the foundation coat and fully saturate from
above.
(3) Watertight seal all items projecting through the roof with appropriate fabric, foundation
and saturation coat.
(4) On all fasteners, apply foundation coat. Embed six inch x six inch (6" x 6") piece of fabric
over Fastener and saturate with foundation coat.
(5) Apply extra thickness of waterproofing material at comers, intersections, angles and over
tap joints. .
(6) Apply two (2) coats of finish coat (white) at a combined total rate of 70 square feet/gallon
to the entre roof area including flashing and repairs.
(7) Re - seal flashing joints where shingles meet metal wall.
(8) Add four (4) downspouts to gutters on each side of the building (upper roof).
2. REPLACEMENT OF SHINGLE ROOF SYSTEM,;,
A. Shingle roof replacement is approximately 11,800 square feet.
B. Tear off existing roof and haul off site.
C. Install fifteen-pound (15) felt paper underlayment
D. Install standard 3 tab asphalt shingles, four (4) nails per tab, hand driven. No staple gun or air
nail application will be accepted.
E. Flash all walls and roof penetrations
F. Re-use all vent flashing and turbine vents
G. Any wood or deck repairs required would be done based on approval by the owner on a time
and material basis. .
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